In the ERJ, the FLCH button configures the flight guidance to present a pre-programmed "climb profile" or "descent profile" on the attitude indicator.
In the EMB-135/145/ER/LR, it will hold 240 knots until 10,000, then 270 until mach .56. In the EMB-145XR, it's 240 below 10,000 ft then 290 until mach .60.
Realistically .6 and .56 are too slow for ATC's liking, so we use VS above 10,000 ft to hold 290 knots until Mach .65.
On descent, the FLCH mode holds a 2000 fpm descent above 12,000 ft, then gradually decreases the sink rate to 1,000 fpm until 10,000 ft, at which point it holds 1,000 fpm the rest of the way down.
I find FLCH works best when you're using the flight director without the autopilot on. Otherwise you're better off using vertical speed, since the autopilot will pitch a bit erraticaly in order to maintain a constant speed.
FLCH usually only works well with the autopilot on days when the air is extremely smooth, at least on the climb.
On descents I usually use Vertical speed rather than FLC, just to be able to fine tune the rate of descent.