Otto - If you zoom in on the pic it looks like a surface mounted reflector instead of a light.
Maybe so. Why would a reflector be needed there? And why not put one on the other side?
Yes, it is a reflector and yes why? Why only on the left side (close to road center) and not both? This will probably stay a mystery forever.
Than the next question(s): remove it and fill the holes before we paint? Put a second on the right side and a new-one on the left (it's cracked) or, for curiosity sake keep 'as is' for everyone to ask me later "why".