First of all -
WELCOME to the forum from Canada’s sunny southern coast in Windsor, Ontario!
I think that most other forum members would agree that learning is key and thus, there are no dumb questions and you will find that all of your queries are answered quite promptly and generally with respect (although there
may be some gentle teasing from time to time).
To answer your specific question, the wiring that comes from the clutch lever is called the “clutch safety switch”. That switch is connected to the main wiring harness of the bike and it’s function is to prevent the motorcycle’s starter from engaging unless the clutch lever is pulled in with your left hand.
That makes it impossible to have the bike go lurching off the before you are ready if you happen to hit the starter button. Your bike may also have a similar switch on the sidestand of the bike - it makes sure that you cannot ride off if the sidestand is still down (that could be dangerous obviously).
The earlier versions of the XS650 didn’t have those extra safety switches and while more safety is better than less, the switches can sometimes fail which can prevent the bike from starting. Anyhow - we can cross that bridge when we come to it.
Please post some more photos of your bike and ask as many questions as you like!
Cheers,
Pete