Single-click would re-open the last closed tab.
Right-click would show the history of last-closed tabs.
Hotkey would be ALT+Z (similar to CTRL+Z) to re-open the last closed tab.
This hotkey can be customized in case anyone wishes to have it differently.
Currently It's all split: We have history button. We have a hotkey but can't change it. We can have a toolbar button via an addon.
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Have you tried out the new Firefox View feature? It doesn't address all of these, but helps you find and open recently closed tabs as well as access tabs from other devices.
@JonIt doesn't seem the same as I'm used to in both how it looks and how it behaves. I was expecting a context menu like on the history button.
Why does it have an icon of Firefox? It seems weird, no?
Why the need to show it as a new feature, instead of merging it with the history? The history could easily show both. Just have the main stuff of the current platform, and sub-menus for the other platforms.
First item on the list could be to show the history in full page (shortcut CTRL+H), to be able to search there, remove items, etc...