+10% Weapon Damage
To address the damage first, the +10% weapon damage modification from the passive skill only affects weapon damage itself. For example, given this weapon
Its weapon damage is 1262-1634. The modification will increase that 10%, making it 1388-1797, which is significant. As stated in the passive tooltip, this applies to all weapons. Essentially it is the same as having the "+10% damage" primary stat.
Heal up to 1%
The healing is a slightly different case. It does work for any holy skill used. However, it is subject to "proc coefficients" which are blizzards way of silently screwing over many skills. Essentially, the 1% of total life healed is never the full 1%, and this can be seen by carefully reading the "up to 1%" part of the text.
First, if the holy damage hits more than 1 target at once, and it hit 10 targets, then each target can only yield 0.1% of the life healed max. After that, each target calculates a coefficient to multiply the life healed by. I am not sure what it is exactly for this skill, however, it is always less than 1 (again as indicated by the up to 1% part) so this means that it could very well be half of that sometimes.
In other words, if you have 100,000 life total, and hit one monster with holy damage, it is possible that you only heal 0.5% from that hit - or 500 life - which isn't much and could go unnoticed.