Use
-L. to cause the linker to look in the current directory for libraries, and use
-lhello to tell it what library to link against:
gcc -Wall -g -c usehello.c -o usehello.o
gcc -g -o usehello usehello.o -L. -lhello
(This way, if you install the library on the system instead of leaving it in the current directory, your application will still link with the same command line.)