Torch

Torch is a finished good that can be sold to a merchant or used as a component in crafting.

Source
Torches can be crafted in the crafting window or Crafting Table by combining the following items:
 * Materials

This produces one Torch:

This produces two Torches:

Recipes
Torches are used in the following recipes:
 * Iron Torch Pole
 * Wooden Torch Pole