What's this wire for?

I'm sure it's for choke, or "some other" smog device. A few cars had idle solenoids, I don't know if any a bodies came with solenoid retard distributors (AKA 350-375hp 440 a few years 70/ later etc)

I agree with you. This 2nd blue heads back from the alternator and snaps on the male spade on the idle control solenoid of factory Carter AVS carb.