The idea is that the hearts stand for strengths, or proud characteristics. The wish is something they hope to be improved throughout the school year.
This is a fairly traditional teacher tool for the beginning of the school year. Some teachers have their upper lever students fill these out about themselves. Some teachers fill them out about their students and give them to the parents.
I personally like to give them to parents to fill out at conferences, they can either fill out while waiting, or after the conference. You could also use it on a back to school night at the beginning of the school year.