Gremlin Prescott is seen working on it when you first arrive in the Floatyard (only if you didn't thin the Blotlings and upset Ghost Ian in Fort Wasteland and took the D.E.C. entrance). It is unknown why Prescott is working on the float, but it is presumably because he was getting parts for his mech.
The float can either be restored or destroyed. To restore the float, Mickey or Oswald must stand on a pressure plate near Stromboli's right leg. This will open the float's stomach, and Mickey can paint in a few missing gears to restore the functionality of the float's arms.
To destroy the Stromboli float, Mickey must first thin out the machine's left leg, then spin attack a panel to reveal a console Oswald can reprogram. Repeating this on Stromboli's right leg results in an explosion that opens his stomach. Thinning out some pipes and then using the nearby fireworks to destroy the back wall of the float results in a path forward.