Lanterns, The Mimic Wiki

Lanterns are default items in The Mimic. They are mainly used to help players navigate their way in dark mazes. It was first given to the player during the final maze of Control's Book: Chapter Ⅱ after Yasu's flashlight ran out of power. Thus, leaving him to use a lantern throughout the odyssey until the beginning of Chapter Ⅳ, where the default lantern is replaced by a candle. As for Yōkai, each lantern will receive a special perk other than lighting up dark areas once the game has been release

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Interesting fact I found on the wiki regarding the skull lantern drop rate. No source so take it with a grain of salt though, but it makes sense to me. : r/darksouls