The solenoid is an electromagnet. To energize, it needs 12v on one lead and Batt NEG or GND on the other lead.
The Black lead provides power to the solenoid. The starter safety unit has logic in it and provides the GND on the Y/R wire when the trans is in neutral or the clutch is pulled in, thereby preventing the bike from lurching forward when the starter motor is engaged.
The solenoid will not activate if 12v is applied to both the solenoid activation leads at there is no difference in potential. It would be like connecting the bike to only one battery post and leaving the NEG terminal unconnected. You need both a POS and NEG connection make current flow.