Bloodlust gives a 7.69%, or roughly 1/13 chance to heal 1 HP when an enemy dies. This can occur even when at full health and is not doubled by Second Stomach.
The effect is indicated by a heart forming and then dissolving into blood over your mutant.
Building
Bloodlust is a strong healing option that scales well with the increased Enemy density of Loops and like Lucky Shot, has the advantage of instantly giving the resource instead of spawning a Pickup like other healing Mutations.
Confiscate and Rabbit Paw can serve as alternatives to Bloodlust that also help your ammo economy.
Comparatively Second Stomach is better insurance and has better synergy with other mutations, though there's nothing stopping you from taking both.
Horror'sThrone Butt provides HP while using the Radiation Beam, allowing it to heal while killing enemies and protecting itself or trade Rads for HP. However, Horror's Throne Butt is very lackluster outside of healing.
Characters
Desirable
Chester trading HP for ammo will be less of a trade-off with Bloodlust.
Chicken can revive with healing from Bloodlust and will generally stay alive longer with it.
While she has high survivability and her max HP leads her to get more Medkits than other mutants, Crystal will still get use out of Bloodlust and can help her recharge Strong Spirit.
Gator, Scorpion and Snake may get a refund on HP spent on their active abilities.