My guess is -- and it's just a guess -- that that "glass" wheel is not glass but is actually made of rust... specifically aluminum rust, aluminum oxide, Al2O3. One might object saying, "But aluminum doesn't rust! That's one of its strengths." Ah, but the fact is that aluminum does rust and it rusts almost instantly upon exposure to air. In fact, just about every piece of aluminum you've ever seen has been completely covered with rust.
But, aluminum rust, aluminum oxide, is first) crystal clear, second) extremely hard, and third) has such a tight crystal structure that it seals the surface of the aluminum it forms on. Once a few molecules thickness layer of rust forms on the surface of a piece of aluminum, it forms such a tight crystal structure and it's so hard that the piece of aluminum becomes encased inside of the crystal-clear rust and no more oxygen can reach the aluminum, so the rusting process stops.
Aluminum oxide, Al2O3, has another name: saphire. Saphire gem stones are just big pieces of aluminum rust. Large, naturally-occuring saphire stones are rare because the process is, as noted above, normally self-limiting. But, it is fairly easy to make large batches of Al2O3 in a laboratory and carefully grow it into very large pieces (round pieces six inches in diameter are not uncommon). Some of you are wearing a piece of it right now which has been polished and protects the face of your watch. Saphire, Al2O3, is one of the hardest substances known (in the league with diamond), properly grown and polished, it's crystal-clear, and it's relatively inexpensive. So, it's a great material for watches.
It would also be a good material for sharpening small knives such as scalpels. The oil is used to cool the knife blade so as not to destroy the temper and also to carry way the tiny bits of metal that are abraided off the blade.
Such a wheel made of saphire would look very much like glass.
Anyway, that's my GUESS.