Dried Leafies can be found in Dunes and Canyons, often around Cacti. They will also spawn on or near Cacti or Cactus Flowers. They are peaceful creatures, but not as passive as their relatives, the ordinary light green Leafies. So they will fight back when being attacked or tamed. However they are not strong.
Dried Leafi Leaf is a necessary ingredient for crafting Advanced Health Potions (as of R26 in December 2015).
Dried Leafi Leaves are no blocks, so (currently as of R26 in December 2015) they cannot be put into the quick-bar, cannot be placed into the world and cannot be displayed on Wall Shelves, in Wood Planters nor in Flower Pots.