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Moonlight Circle is a structure added by Roots 2. It comprises a number of pillars made of Cobblestone and Mossy Cobblestone. Within the circle, marks can be seen on the ground, one in the centre and 4 around it. This is described in the Book of Herblore. Note that this shows the 4 outer marks as being evenly spaced around the central one, but this is not necessarily the case. The Moonlight Circle is used to produce the Roots 2 crops: Moonglow Leaf, Terra Moss, Pereskia Blossom, Wildroot, Aubergine and Spirit Herb.
Plant or crop items, such as leaves and potatoes, are placed on the marks as outlined in the Book of Herblore. All items must be fully grown. Spirit Herb needs the central item (Nether Wart) to be on Soul Sand. To grow crop items, place the Dirt or Soul Sand above the marks, which can then be seen on the blocks above. The Dirt can then be hoed and crops planted in the normal way. It is not known if the Dirt with marks can be removed, or hoed, without removing the marks as well.
Once all items are at full growth, a light effect will be seen and the central item will be transformed into the Roots Crop. It can then be harvested by right clicking. In some cases this will also give a seed, which can be planted like a vanilla crop. If there is no seed, the crop itself acts as the seed. This means that the ritual only needs to be performed once for each crop.
Note that the Book of Herblore states that the transformation occurs under moonlight, but this does not seem to be the case.