I think it could be either a button, or a clay setting that holds a stone or metal piece and was stitched on to something as an ornament. The bottom looks like it had some kind of glue or binder on it. Look at the purple/blue ring around the holes.
I'm gonna go with football9 on this! I've found several "buttons" made from the bottom ring down of minnie balls, one of which had the button holes made with, I think, a fork, as they were square!! Great find, whatever it may be!! Great hunting and good luck!! Regards, Richard.