You probably do use it without realising. Java is used to run Java 'applets' in a web page. Java applets might take the form of scrolling text banners, some kind of game or an interactive animation (for instance). If a web page contains an applet, the web browser will run it as soon as the page is visited and loaded. You won't know about it in advance.
Java provides an environment called a 'sandbox' in which an applet runs. The general idea is that, if an applet contains harmful code, it cannot get out of the sandbox to do nasty things to your computer. The chances are that applets within a web page will be harmless. Even if you come across one that isn't, the Java environment should provide protection. However, if code does get past defences, then there is a potential risk to your computer.
Vulnerabilities or 'holes' are always being found in the software used to browse the Internet. That's not to say that we'll certainly get caught, or that anyone is actively exploiting them. The fact that vulnerabilities even
technically exist is enough to make software suppliers/developers want to patch them. Once a vulnerability has been discovered, there is always a chance that it
could be exploited.
Here is a page bringing such a vulnerability to our attention. The solution advised is to update to the latest version of Java. Also have a read of
this page under the heading '
Java SE Security Overview'. It isn't necessary to understand it fully but reading the paragraph a few times gives an idea of what Java does and how it should do it safely. The last sentence mostly says it I think.
To put things into perspective, you have to be unlucky to visit a site that tries to harm you with embedded code (not just Java) but it can and does happen to some people. Staying patched and up to date should lessen the chances of being a victim.