Salvage this is a child skill of Fishing and repair. A child skill basically means two skill contribute to the level of the skill. To get the total level is take both the skills levels together and then divide by two. Salvage can be used by right clicking a golden block twice with any tool/armor with durability to get the raw resources out of the salvage.
Perks of levelling up Salvage:
Advanced Salvage: Grants the number of materials based off of the durability of an item. The number of materials received by durability per salvage level is .1% up to a cap of 100% at 1000 salvage.
Arcane Salvaging: Grants the chance to get enchantment books off of the item being salvaged. This is increased every 125 levels of salvage. The chance to get the full enchantment off of a book increases by 2.5% per salvage rank and the chance to get partial enchantment increases by 1.33% per rank.