If you set the item state to true in the item setting you can use scripts and expressions in your items as they have their own variable scopes.
In the above screenshot we have a Startup behavior tree which sets a "is_burning" boolean variable. This is the state of the torch, and we can use this state in the "Look" tree to send the appropriate message back to the user ("You see a torch. Use it to ignite it." or "You see a burning torch."). In the same way you can switch the state in the "Use" tree and adjust the tile for the item and it's light source settings.