I keep coming back to your question. A latch hook is a tool. What has the latch hook made? What size is it? Is it a stiff piece like ones made by children. Sounds like it's softer and made with a fine mesh. Sounds like it's backed with cotton fabric making it useable in ways a kids piece couldn't be used. Actually it sounds more like it could be a cross stitch, embroidery piece.
I also suggest you take the piece to a fabric store and ask. They will see it, know it's characteristics. Usually, fabric store employees, have knowledge and experience.
As to your question about binding a pillow. If the fabric.is soft, and will make an edge to the pillow, place yhe backing for for the pillow right sides together to make a seam around the edges, leaving a space for putting in the stuffing. Turn it right sides out and stuff it. Sew up the open space.
You also can put the pieces wrong sides together and bind the edges together. Fold the binding over the edge so the raw sides are covered.