I see the word flugzeug schule which means flight school and I also see what looks like a luftwaffe eagle holding the swastika.. so maybe a badge for flight training school
schule is the German word for school. There's a long word prior to that, must be the name of the school. Looks like Flugzeugführerschule A/B 51. Appears to be related to the Nazi German military. Maybe an equipment tag? Nice find.
It appears to be a laundry tag for the Pilot Training School as already mentioned.
When the Herren folk needed their laundry done it was processed through the units laundry section, each item being given a numbered tag so that it got back to the owner once it was clean.