He is not important as regards to Hebrew language. His importance lies in his development of the modern doctrines of Zionism and Judensfolk which pertain to Israel and the Jewish People respectively. Theodor Herzl actually believed that the official language of the Jewish State should be German, in recognition of the high level of German culture in the 19th century.
The person who developed Modern Hebrew was Eliezer Ben Yehuda who copiously poured over The Bible and extracted enough of a language to begin speaking it himself. Ben Yehuda was inspired by the Zionist ideals discussed by Herzl and desired for the Jews to have their own unique language to go along with their unique state-to-be. Ben Yehuda's vision gained traction and Hebrew became the language of the Jewish Settlement (Yishuv) in Mandatory Palestine and later Israel.
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