This item appears to be a simple spyglass with poor to no magnification.
When a creature uses it to view another creature, as long as the viewer can understand at least one written language, the name of the race of creature (if a word exists in the viewer's language), as well as the creature's full personal name, if any (in its own language, if the viewer's language has no translation or pronunciation), appears overlaid on each creature in view.
When a creature that understands at least one written language uses it to view an item, it sees an aura around that item if it is magic (or affected by a spell creating such aura), as if by the effect of Detect Magic. The viewer may make an Intelligence (Arcana) check, DC 15, for each such magic item in view; on a success, the viewer can read the details about that item that would have been given if the spell Identify were used on it. On a failure, no additional information is present, and the same creature cannot attempt to identify the same item for the next 8 hours.
The item can be created by casting Identify at the 9th level for 8 hours on a normal spyglass. The spyglass must have a certain grade of optics and a certain constituent of precious metal for the spell to take effect, at the DM's discretion.
The spyglass has AC 7, 3 HP, vulnerability to bludgeoning damage. When destroyed, it simply ceases to function.
Per Detect Magic, the spyglass has an aura of divination.