Flower come in all shapes and sizes from small and dainty to large strings of flowers. Picking them will give petals and restore five points of sanity. Further, once picked they can be used as fuel for a fire or (more importantly) be crafted into a garland when you have 12 petals which grants the player additional sanity as long as it is worn. When couple this long term sanity boost with the five points of sanity for each flower, this becomes an ideal source of early game sanity for players.
Even more importantly later on, Butterflies only appear/spawn near flowers. When a Butterfly is caught, it can then be planted to create a new flower. This allows you to not only renew the amount of flowers but it also allows you to create a flower/butterfly farm. Better still, if you have such a farm near a Bee Box, your bees will be able to collect their pollen from the cluster of nearby flowers allowing for faster honey production.
Care should be taken with flowers though. If you pick too many of them without replanting them then you could run out. Also, some flowers are not good (and are, in fact, Evil Flowers) which should generally be avoided as they will decrease your sanity rather drastically.