Lady Crane is Ichabod's mother and practiced witchcraft. She wasn't bad or anything, she just loved nature and wished to celebrate in it.
Ichabod's father, a powerful man in the community, saw her doings as being evil and had her put into jail. He there tortured and eventually killed her.
Ichabod watched his father leave the room in the courthouse and then proceeded to go back into the room. Here he found various types of torture devices and saw the eyes of his mother within one of them. The doors open and his mother's mangled and bloodied body fell out. In his terror, Ichabod fell backwards and pressed his hands onto a chair of nails, explaining why in the present he has those weird little scars on his hands.