Hi
If you are referring to the button that is shown when making or receiving a phone call on Apple Watch, then that is a Mute button. The microphone is already active. Tapping on the Mute button will turn on Mute for your end of the call, so the caller will not hear you (to turn off Mute, tap the same button again):
More information: Answer phone calls
The following steps may otherwise help (check after each):
If you have not yet done so, update both your iPhone and your Apple Watch to the latest software, starting with your iPhone (be sure to make a backup first):
- Update the iOS software on your iPhone, iPad, or iPod touch - Apple Support
- Update the software on your Apple Watch - Apple Support
On your iPhone:
- Go to: Settings > Siri:
- Check that Siri is enabled.
- Check that Allow Hey Siri is enabled.
- If these are already set correctly, try disabling Siri, pausing for a few moments and then re-enabling it.
- Go to: Settings > General > Restrictions - check that the restriction for Siri & Dictation is not enabled.
- Go to: Settings > General > Keyboard - check that Enable Dictation is turned on.
On your Apple Watch:
- When viewing the time on your watch, go to the Home screen by pressing the Digital Crown (round button) once.
- Go to: Settings (cog icon) > General > Siri > check that Hey Siri is turned on.
If you are using the "Hey Siri" command, check that you are using the feature correctly:
- To use Hey Siri on Apple Watch, the display must be awake.
- Wake the screen of your watch (by tapping it or by raising your wrist) and then say "Hey Siri".
- More information, including under Get help:
In order to use Siri on Apple Watch, check that your Apple Watch is connected either to your iPhone (whilst it has a connection to the Internet) or directly to Wi-Fi (as a fallback, when a Bluetooth connection to your iPhone is not available).
- How to use your Apple Watch without your iPhone nearby - Apple Support
- About Bluetooth and Wi-Fi on Apple Watch - Apple Support
Remove any protective case or film that you may be using on your watch if it is blocking the microphone port (the lower of the two ports on the opposite side to the buttons):
Clean your Apple Watch, paying particular attention to the microphone port, in case it has become blocked by debris.
- Be sure to follow Apple's cleaning instructions (do not insert anything into the port and do not use any compressed air).
- Cleaning and wearing Apple Watch - Apple Support
- Important handling information
Restart your Apple Watch and iPhone, turning both devices off together, then restarting your iPhone first:
If the issue persists, next try unpairing and re-pairing your watch:
- The Watch app on your iPhone takes a backup of your watch automatically when unpairing via the app.
- Initially choose to Restore from Backup during set up (most data and settings will be restored, with some exceptions such as Apple Pay cards and passcode).
- If the issue persists, next try unpairing and setting your Apple Watch up as a new watch.
- Unpair your Apple Watch and iPhone - Apple Support
- Set up your Apple Watch - Apple Support
If the issue then still persists, I suggest that you contact Apple Support (mail-in service may be available, if required), make a Genius Bar reservation or visit an Apple Authorised Service Provider for assistance: