This is silk....and yes, it can be used as wrap material and was on some vintage cues back in the 50s and 60s. Aside form whether it is too degraded (wouldn't hold up to the wear), the issue is how thick the strands are. If you can check with a dial caliper and this line is 0.025-0.030" thickness, then yes, it should work just fine. But a cuemaker/cuesmith would likely need to deepen the wrap groove some to accommodate the slightly thicker size. If it's much thicker than that (like 0.030-0.040") I wouldn't even bother. If you have to take a handle way down for a thicker wrap, then there will be an issue if it ever needs to be redone with modern linen or leather in the future, which is usually 0.020"-0.025".
My $0.02 anyway....
And yes, this is not cuttyhunk linen. Different stuff, but has been used as wraps.