If a needle fell from space to Earth at the speed of light, the destruction would be similar to that of a nuclear bomb.
In reality, no object can reach the speed of light, so this situation can only happen in our imagination. And if it did happen, an object as small as a sewing needle (about 5cm long, about 0.1cm thick, with a mass of no more than 0.3g) would be very dangerous.

Even a grain of sand of infinitesimal size is dangerous if it travels at the speed of light. Its destructive power is equivalent to a 100-ton object falling from the 15th floor of a building.
A sewing needle, when it hits the earth at the speed of light, will cause an explosion as destructive as a nuclear bomb with 43 kilotons of TNT. If you don't know, the Fatman bomb that devastated Nagasaki, Japan in 1945 contained only 21 kilotons of TNT.
So, when a sewing needle hits the ground at the speed of light, its kinetic energy will increase infinitely and can easily destroy any large city. Even more terrible, it will create a hole, energy will be released, matter and water will flow out, causing the surface of the earth to gradually heat up and burn everything. At that time, the Earth will be torn apart.
In another case, if the needle pierces the earth, there will be a global earthquake but humanity will survive.