Here's how it works:
1. Obtain the Old Amber: You'll find it in the Fossil Maniac's House in One Island.
2. Visit the Fossil Revival Center: Go to Cinnabar Island and head inside the building with the large dinosaur skeleton outside.
3. Revive the Fossil: Speak to the scientist inside the Fossil Revival Center and choose the "Revive Fossil" option. Then select the Old Amber to revive the Aerodactyl Pokemon.
You can't trade or sell the Old Amber. It's only used to revive the Aerodactyl Pokemon, making it a valuable item in your journey through FireRed.