This is a motif stitch. A wheel pattern is made using the blanket stitch. This, inspite of being called the buttonhole wheel commonly. Again, it is a result of using buttonhole and blanket stitches interchangeably. This pattern can serve as a very decorative piece of stitch in embroidery work.

You need to know the blanket stitch to be able to do this stitch. I will work the stitch around a cirle with a common point in the centre.

This stitch can be tried using the buttonhole stitch as well.

buttonhole_wheel_1      buttonhole_wheel_2
Fig 1: Using the circle as the stitch line, bring the needle out through A. Take the needle in through the centre point B and out through C. Keep the thread behind the needle and pull it out.   Fig 2: Continue with this process all around the circle. You can widen the centre point instead of keeping it as a single common point.
buttonhole_wheel_3   Fig 3: A finshed buttonhole wheel would look like this. You can further enhance the look by using a contrasting color to whip around the wheel rim.