Looks like someone took a Copper Electrical Washer, made a groove on the inside to accommodate the rim of the Wheat Cent, placed the Wheat Cent in the hole, then likely roll pressed the Copper Washer so that the metal would fold over the rim of the Wheat Cent to hold it in place. They might have made it as a Lucky Coin piece to carry around or may have made some to sell.
I'm not sure it's worth a whole lot and maybe it was created out of the idea and mystique of the lucky penny? Looking back on that myth and doing a little research I recall a time when I sported a pair of penny loafers. I don't recall I was doing it for any kind of luck, but I think it did come to my attention that's why you wanted to wear those shoes. I only wanted them, because that's what was hip at the time. https://www.retailmenot.com/blog/how-to-celebrate-lucky-penny-day.html
The year 1936 simply may have meant something to someone. I've seen dimes placed in bezel's to be worn on a chain, the dates on the dimes having some importance, be it a birth, anniversary or something. I do not see anything on the rim there to attach to anything, so as other fella's have said, a "lucky" penny? The year may or may not have any special meaning. A very neat find though, it makes it a better find than "just" a 36 wheat.