Consider this representation for lambda terms parametrized by their free variables. (See papers by Bellegarde and Hook 1994, Bird and Paterson 1999, Altenkirch and Reus 1999.)
data Tm a  = Var a
           | Tm a :$ Tm a
           | Lam (Tm (Maybe a))
You can certainly make this a Functor, capturing the notion of renaming, and a Monad capturing the notion of substitution.
instance Functor Tm where
  fmap rho (Var a)   = Var (rho a)
  fmap rho (f :$ s)  = fmap rho f :$ fmap rho s
  fmap rho (Lam t)   = Lam (fmap (fmap rho) t)
instance Monad Tm where
  return = Var
  Var a     >>= sig  = sig a
  (f :$ s)  >>= sig  = (f >>= sig) :$ (s >>= sig)
  Lam t     >>= sig  = Lam (t >>= maybe (Var Nothing) (fmap Just . sig))
Now consider the closed terms: these are the inhabitants of Tm Void. You should be able to embed the closed terms into terms with arbitrary free variables. How?
fmap absurd :: Tm Void -> Tm a
The catch, of course, is that this function will traverse the term doing precisely nothing. But it's a touch more honest than unsafeCoerce. And that's why vacuous was added to Data.Void...
Or write an evaluator. Here are values with free variables in b.
data Val b
  =  b :$$ [Val b]                              -- a stuck application
  |  forall a. LV (a -> Val b) (Tm (Maybe a))   -- we have an incomplete environment
I've just represented lambdas as closures. The evaluator is parametrized by an environment mapping free variables in a to values over b.
eval :: (a -> Val b) -> Tm a -> Val b
eval g (Var a)   = g a
eval g (f :$ s)  = eval g f $$ eval g s where
  (b :$$ vs)  $$ v  = b :$$ (vs ++ [v])         -- stuck application gets longer
  LV g t      $$ v  = eval (maybe v g) t        -- an applied lambda gets unstuck
eval g (Lam t)   = LV g t
You guessed it. To evaluate a closed term at any target
eval absurd :: Tm Void -> Val b
More generally, Void is seldom used on its own, but is handy when you want to instantiate a type parameter in a way which indicates some sort of impossibility (e.g., here, using a free variable in a closed term). Often these parametrized types come with higher-order functions lifting operations on the parameters to operations on the whole type (e.g., here, fmap, >>=, eval). So you pass absurd as the general-purpose operation on Void.
For another example, imagine using Either e v to capture computations which hopefully give you a v but might raise an exception of type e. You might use this approach to document risk of bad behaviour uniformly. For perfectly well behaved computations in this setting, take e to be Void, then use
either absurd id :: Either Void v -> v
to run safely or
either absurd Right :: Either Void v -> Either e v
to embed safe components in an unsafe world.
Oh, and one last hurrah, handling a "can't happen". It shows up in the generic zipper construction, everywhere that the cursor can't be.
class Differentiable f where
  type D f :: * -> *              -- an f with a hole
  plug :: (D f x, x) -> f x       -- plugging a child in the hole
newtype K a     x  = K a          -- no children, just a label
newtype I       x  = I x          -- one child
data (f :+: g)  x  = L (f x)      -- choice
                   | R (g x)
data (f :*: g)  x  = f x :&: g x  -- pairing
instance Differentiable (K a) where
  type D (K a) = K Void           -- no children, so no way to make a hole
  plug (K v, x) = absurd v        -- can't reinvent the label, so deny the hole!
I decided not to delete the rest, even though it's not exactly relevant.
instance Differentiable I where
  type D I = K ()
  plug (K (), x) = I x
instance (Differentiable f, Differentiable g) => Differentiable (f :+: g) where
  type D (f :+: g) = D f :+: D g
  plug (L df, x) = L (plug (df, x))
  plug (R dg, x) = R (plug (dg, x))
instance (Differentiable f, Differentiable g) => Differentiable (f :*: g) where
  type D (f :*: g) = (D f :*: g) :+: (f :*: D g)
  plug (L (df :&: g), x) = plug (df, x) :&: g
  plug (R (f :&: dg), x) = f :&: plug (dg, x)
Actually, maybe it is relevant. If you're feeling adventurous, this unfinished article shows how to use Void to compress the representation of terms with free variables
data Term f x = Var x | Con (f (Term f x))   -- the Free monad, yet again
in any syntax generated freely from a Differentiable and Traversable functor f. We use Term f Void to represent regions with no free variables, and [D f (Term f Void)] to represent tubes tunnelling through regions with no free variables either to an isolated free variable, or to a junction in the paths to two or more free variables. Must finish that article sometime.
For a type with no values (or at least, none worth speaking of in polite company), Void is remarkably useful. And absurd is how you use it.