Feeding a Carrot to a Bird in a Birdcage will produce 1–2 Carrot Seeds, as well as a 50% for 1 regular Seed. Carrots will also lure Rabbits towards them, whether as bait for Traps, or simply dropped. This can be useful for getting morsels, as the rabbits will not run away when eating a carrot dropped on the ground. However, if they're not taken care of, they will consume the entire carrot. Rabbits will not eat carrots if they are left planted in the ground. Carrots can be given to a Bunnyman to befriend it.
A Roasted Carrot is a vegetable food item made by cooking a carrot on a Campfire, Fire Pit, or Star. It restores slightly more health than its raw counterpart. It can be used as an ingredient in several Crock Pot recipes.
Since planted Carrots never spoil they can be used as an emergency food supply. And since they do not respawn, not picking them until it is necessary improves availability of food during times when food sources are otherwise scarce.
Most of the characters will look towards Carrots with a certain degree of dislike, Wilson comments on them with "Yuck. I pulled this vegetable out of the dirt.", Willow says "Yuck. It's all vegetabley.", Woodie will begrudgingly call it "Rabbit Food", Webber will say he misses being forced to eat them, and Maxwell will say he's not a fan of vegetables.