Probably because that's what it looks like
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It is called the eye of the needle
The motion of the needle in a sewing machine is vertically, rapidly up and down.
Every sewing machine is a little different, so be sure to read your manual. You want to make sure that the machine is threaded correctly from the top (through the mechanisms and through the needle) and the bottom (called the bobbin.) Most sewing machines have a foot pedal, which you step on as you position the fabric to pass under the needle.
It depends, sewing needles come in all different sizes.
The hand wheel on a sewing machine is primarily used to raise the needle in order to feed or remove the work (seam, zipper, button or whatever you are sewing) into or out of the machine. It is also used to advance the work slowly to reach a certain point manually, where you might again resume sewing.