Good old Honda. Deperatelt trying to confuse everybody.

That's perfectly standard.

Ignore the yellow and blue wires spliced together. That's the two earth wires from the ignition pickup. They go into the CDI and then to ground. Honda are just saving themselves a connection.

To do the splice, cut the orange/blue wire right up at the connection to the green (or anywhere), and then splice it into the Black/white wire, or any ignition switched 12V. Tape it up and the job is done.