It doesn't hatch, you chuck it on the ground and if luck goes your way, a baby chicken will appear.
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It Takes 5100 Steps to Hatch Staryu EGG
Press A on the egg to make it hatch faster!
Currently they are only for decoration and will not hatch. However Mojang have announced they plan to bring more dragons into the game, so you never know, they may be hatchable in the future.
That is just a block, you can`t hatch it YET.
The only way to hatch a vaporeon is to hatch an eevee and the evole it with a water stone. there is no such this as a vaporeon egg