Humanity is used for a few thing in Dark Souls, including returning to human form and increasing the number of Estus Flasks you can have on you. Normally, it's hard to come by Humanity, but there are a few spots where you can farm it.
1) The rats in The Depths seem to drop Humanity more often than any other enemy.
2) The skeleton babies in the room before Gravelord Nito in Tomb of the Giants. They will continually respawn and drop souls as well, so this is a great spot.
3) In the Duke's Archives, there are octopus-headed enemies in one room that seem to drop Humanity frequently, too.
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