Do not freak out. Yes, a big green icon has magically popped up in your app drawer; no, it isn't bad; and yes, it is pretty much useless.
If you caught the announcement of Google Play Services 3.0, aka "Google+ Sign-In," you're already halfway up to speed on this. Google Play Services is an APK that many of Google's apps rely on to hook into Google+ and, just like the Play Store, Google has the ability to silently update it. Recently, they started rolling out an update for it, and along with a bunch of new app integration stuff, it came packing this superfluous "Google Settings" app.
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