It holds the spark plug wire loom... let me get a picture, my spare Fiero motor has it...
EDIT: Here... (side that faces the trunk)

Yeah, so... it looks like it's both a heat shield, as well as the spark plug wire loom clip. I know in the past, these clips seem to fail and break, but DORMAN sells a replacement of these in a large pack that has like 4 or 5 others of various kinds... so you can still find the clip if you want to have the plugs tucked away like that.
Personally, I think if you're going to keep a Fiero for any given / long period of time... at this point, it's worth having the exhaust manifolds and Y-pipe ceramic coated to reduce the heat it radiates. It helps the cat work better, but also reduces the undertrunk temperatures anyway, which makes everything last longer.
[This message has been edited by 82-T/A [At Work] (edited 03-25-2025).]