Is that an alarm kit under your steering column?
The relay is not OEM and may be part of that alarm; the harness appears to be heading towards the firewall. Have you traced the orange wire to see where it goes? Does it go to a horn? or some lights?
The tan wire with an open connector might be for the hood lamp. I don't have a hood lamp in my 1987. My 1986 is currently not easy to get to, so I can't look at the hood lamp wiring. Check if the tan wire is hot all the time. If so, it is likely for the hood lamp. Update: My 1986 shop manual shows the hood lamp is an orange wire. I suspect wire in your picture is also orange, not tan, because the wire leading from the relay also looks tan, but you said it is orange.