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The only reference work I'm familiar with on the Kindle is the New Oxford American Dictionary.
I use this as my normal lookup dictionary, but it can also be opened just like any other book on the Kindle. It has an active table of contents (but a very limited one: "About this book", "Key to Abbreviations", "Dictionary A - Z", etc). You can browse through the pages, just like any other book. You can also search, follow hyperlinks, add notes and highlights, and do all the other things you would do with a normal book.
I assume other dictionaries and encyclopedias work in the same way, but I have no direct experience of them.
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