Facial Expression Animations
The Spyglass has a feature that animates your face as you type in local chat. For instance, if you type a smiley emoticon :-), your avatar will smile.
Or if you type a sad emoticon :-(, your avatar will cry, etc.
This feature is turned on by default. You can turn it off or on in Menu 
/ Tools / Emote.
Customizing
Not all emoticons may be in the presets. To check if your favorite emoticons are included, open the Spyglass's inventory (right click the HUD and
choose "Edit" from the wheel menu, then go to the "Contents" tab). Look for the notecard named "_Emoticons" and open it.
You will find sections marked by an expression in square brackets, e.g. [Smile]. Below you will see all the emoticons, one per line, belonging
to that category. You can add new emoticons at your discretion.