This is equivalent to a crossed ribbing stitch done on traditional needles. The figure 8 makes a good single ribbing stitch for flat panels because it is the same on both sides and doesn't roll at the edges. This ribbed stitch can only be done on the long Knifty Knitter looms, not the round looms, because the wrap is done back and forth across the long loom as shown in the photo at the bottom of this page.
After the second row is wrapped, you knit off. Knitting off is pulling the bottom loop over the top loop of each peg and off the loom.
The knit in the photo of the blue scarf was done with one strand of polyester yarn on the pink Knifty Knitter long loom. To create a heavier bulkier knit you can use two strands of yarn as one as you wrap the loom. This is shown in the photo below of the purple and black knitted pieces.
Find detailed instructions for how to knit a scarf using the figure 8 here.