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The HeatSeeker works on the temperature differential between two objects. So the colder it is vs the heat of the object (blood, deer, person, etc) it will show as lit LED lights. So if there is a lot of blood and it is very fresh (still warm vs cold background), yes it will show on the LEDs. But a blood trail that isn't warm or much blood it will not detect it.
This is not a thermal like a traditional thermal camera with a screen to see heat signatures. This device is designed to look for a heat signature relative to the surroundings. You scan it back and forth and the LEDs will light up as it crosses a temperature differential. It was designed to help hunters find deer/prey that may have been injured and ran away and may be in tall grass or thick brush.
Here is a manual for that item:
https://op1.0ps.us/pdf/opplanet-aimshot-heatseeker-manual.pdf
Unfortunately AimShot no longer makes a rifle mount for these devices.
Yes, as long as there is not too long of a delay for it to cool off.
No there is not an image of what you are reading with the device