What exactly is this: (I know its dirty


In my 92 celica gt
My guess is that it is some kind of sound muffling device?
My question is can I safetly take it off? The problem is if I take it off there is nothing left behind it, i.e. a straight hole to the pipe which would result in air bypassing the filter furthur down. Is there something I can cover the hole up with? Or maybe I am mistaken and I shouldnt take it off?
With it taken off:

Thanks.