As previously stated: likely an IR LED - an emitter if this part of the device commands the other, not a sensor per se.
Works exactly like a visible spectrum LED, but the wavelength is too short for the naked human eye to perceive. Also previously stated, depending on the filtering, most digital imaging devices will "see" the output as dim white light.
The output will almost certainly be modulated as opposed to continuous - likely at .. was it 38KHz? And (I may be giving away my age), an AM radio in close proximity will likely pick up this modulation as a high pitched "bee" - although this is only barely useful as a go/no-go determination as to whether a remote is working or not.