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What is this and why is it leaking?

It is a drain hole from the area where the starter is mounted under the top cover. That area is supposed to be dry but also holds the crankcase vent. Any fumes or liquid from that vent are supposed to be directed by hose(s) to the carburetor input tube(s). If you are seeing seepage then something is amiss with the crankcase vent system. Pull the top cover and/or the air filter cover to investigate the issue.
 
This is a /5 right? Anyway, that hole drains anything that might be in the starter cavity underneath the top engine cover. Most likely the line that takes oily mist from the crankcase breather has come loose and that mist is pooling in the cavity. You'll need to get that cover off to see what's going on. It takes some fiddling based upon what I remember. You'll need to loosen the carbs and maybe tie them off out of the way. I think last time I was in there I also removed the clam shell around the air filter, but you'll have to give a look over to be sure. A couple of allen bolts hold the cover in place.
 
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