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The Book of the Iron Fist contains the history of the men and women who became Iron Fist in a certain time of need. It's made from the scales of Shou-Lao the Undying himself, therefore it can only be understood by those who embraced and correctly control his chi.
It glows when an Iron Fist touches it because they all draw from the same original power source. The Book of the Iron Fist supposedly contains all of the kung fu techniques of every Iron Fist who ever lived.

When Orson Randall sought to end the cycle of the Iron Fist he stole the book and went into hiding. However his fellow Immortal Weapons came looking for him and in a panic he killed one of them. He had been on the lam ever since.
 
Orson Randall first passes it on to Danny because he deems that it will be necessary  to master its secrets to survive the upcoming Tournament of the Heavenly Cities.

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