I saw a post somewhere--can't find it now--that took and hot glued them together with ends open and sides together. They did several depending on the length you need. They attached a ribbon through the top spool and made a nice bow for hanging. It became a holder for your circular knitting needles. You thread one end through one hole and out the other and balance equally in spool. This way they do not get bends in them that are hard to work with when knitting.
Some people varnished them to add to the look, and some painted them and decorated with painted flowers. To each his own.
I wish I had more spool so I could make one.
I don't see why you couldn't make a quilted square to hang it from and add the ribbon too. Lots of different takes on this one.