I don't know what that is on the handle (looks like raw hide, but from what I couldn't say). And on the sheath...could be young (like hatchling or yearling) crocodile skin. Stretched and really dried out. But I could see it being that. Just my opinion though (I ain't one of those old dog NAFHA guys who can sometimes tell you species and even locality based off a small sample).
Now as for care. I would snip the lace and pull the lace off with small pair of scissors and tweezers (don't just tug and snap it off just because it's brittle, you can snag on a possibly still tough part and rip the skin). Then soak the skin in a 1:2 ratio of Glycerine and Water. You can re-lace it once it's been re-hydrated with Calf Lace and some lacing needles. It's a simple cross stitch (if at all confused about how to there are plenty of easy to follow leather lacing tutorial vids on youtube).
If you look around online enough, it shouldn't cost you more then $30 for smaller roll of calf/leather lace in the right color, the needles, and a several ounce bottle of Glycerine. But you'll end up with a lot more left over then you need for the one project if you choose to go the preservation route.
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