The Madman’s Knowledge offers Insight, indicated by the eye under your current Blood Echoes, and awakens the Doll that will allow you to exchange your Blood Echoes for levels.
Speak to the Doll to level up your stats and make sure to grab the gift from the Messengers.
While you’re here you should also talk to the Messengers on the steps for the Beckoning Bell and Silencing Blank , both of which are used in the multiplayer aspect of the game, and then head inside the building to store any items you don’t want to use.
Don’t forget to check the desk to repair your weapons and fortify them with Blood Stone Shards to increase their damage.
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