if (# || $query($target))
Much like the other Q. In this case, it's an input, so $target will (most likely) be the active window.
In a channel window "#" returns the channelname and is NUL in other windows. If the script is triggered from a channel window "if #" is matched (not $false,$null,0) so $ifmatch will return #channelname.
In any other window, "#" is NULL, so the script moves to the next condition "if $query($target)". if you are inputting into a query window, then this will match and $ifmatch will return the windowname.
If neither "#" nor "$query($target)" are matched, then the script moves on (in this case, there is nothing more, so it returns).