It's hard to tell from the picture, but it looks to me like it might be some type of tulle ribbon yarn. I found a couple that might be somewhat similar to yours in terms of the texture/weight:
Both of these are listed as bulky weight yarns, and I would say that yours probably fits into that category as well.
You could try working swatches on a couple of different needle sizes to test the kind of fabric it creates, and then go with a needle size that works for you. I'm not sure how to recommend a pattern for you, since you only have the one skein and you don't know yet how much yarn you will be using (since this will depend partially on the needle size you go with, it might be easier to determine a pattern once you know how it knits up).
Perhaps someone else here has used a similar yarn in the past and can give you some suggestions on what to do with it.