Press A to launch the Beetle into the air, and tilt the Wii Remote to control it. Fly into an item to catch it and carry it. Press Z to look down and A to drop the item (Hook Beetle). Hold the A button to speed up (Quick Beetle).
The Beetle is a new item introduced in The Legend of Zelda: Skyward Sword, that functions much like calling a hawk in The Legend of Zelda: Twilight Princess. It gives Link the ability to grab distant objects, such as hearts and rupees and other monster drops. What's more, the Beetle allows for greater precision than the Boomerang, allowing more precise maneuvers to be performed easily.
 Hook Beetle
In addition to gathering items, it can also be used to carry items, such as bombs, across otherwise impassible hazards, and at a much faster rate allowing you to move further before the bomb self-detonates. This upgrade is free and will be necessary for the further exploration of Lanayru Desert. An ancient robot whom will need rescuing will offer the upgrade once you save him.
This variation to the Beetle enables the user to carry items with it and drop it below.
 Quick Beetle
After receiving the upgrade from the Robot in Lanayru Desert, it is possible to further upgrade the Beetle in Gondo's Scrap Shop in the Bazaar. At the price of 50 rupees, and at the expense of 2 Ancient Flowers, 2 Hornet Larvae, and 1 Golden Skull, Gondo will upgrade your Hook Beetle into the Quick Beetle.
This version of the Beetle can be sped up by holding A and can be used throughout the duration of its use. However, you will not be able to speed up while an item is being held.
 Tough Beetle
The Beetle's final upgrade costs 50 rupees at the Scrap Shop and requires 3 Ancient Flowers, 4 Amber Relics, 1 Blue Bird Feather, and 1 Goddess Plume.
This Beetle allows for a much longer travel distance when in use.