It's a small vessel - the size of a hen's egg. There are some other vessels of the same type too.

Dimov's assumption is that Lake Town's inhabitants used to make miniature versions of larger vessels in order to use them as burial offerings. If this was the case, then it is indicative of a belief in an afterlife.

The miniature jar is anthropomorphous. Take a closer look at its neck and you will be able to see the face - eyes and smiling lips.