Yes it is a vacuum operated remote mounted fuel shut off. There should be a hose running to it from one of your carbs that operates the vacuum and will need to be plugged if you bypass it. Other makes like Suzuki and such have that vacuum operated shut off connected to the petcock,not these Honda's.
Just out of curiosity what have you determined is wrong with it, is your bike not getting gas when running or is it getting to much and is flooding/overflowing when parked ? If it is the latter then check your oil for gas getting in the crankcase.