From the Super Mario Wiki
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Melon Crates are special objects that appear during the events of Donkey Kong 64. They look like big, wooden crates and have a watermelon slice printed on them. The Kongs can find them while venturing through the different levels of the game.
Melon Crates are found in specific places and contain health-restoring Watermelon slices. When the player has lost a great amount of health, they can break the crates open with any kind of attack. The crate will then release four Watermelon slices, which can refill up to one watermelon of the Kongs' health gauge. This can be very helpful if the player is low on health.