When it is in a Sims' inventory, they have the option to "Eat Morsel." This consumes the entire item. Dried food, unlike normally cooked items, will never turn foul, and will always be edible. It is similar to harvestables, except it will fill the hunger need more.
Dried food is available at three different levels of quality, and thus taste. However, Sims with the Snob trait will usually dislike it.