Explanation:
This is intended to improve the pace of play and ensure equality.
A ball that enters the Penalty Area can normally be played after a drop. Similarly, if the ball is technically playable a players stance may be affected by the cart path or the ESA protected area. In the situation on this hole, it is very difficult to locate a point to drop that adheres to the Rules of Golf (e.g. not closer to the hole etc).
Finding the correct drop position can be time consuming as separate steps should be used to determine a drop area that is not affected by the ESA or the path. For most players it is extremely difficult to find a legal and fair location.
So the drop area provides an alternative to the Rules of Golf options assuming that you do not wish to (or may not) play it as it lies, or after finding a valid drop area under the Rules of Golf.
In the diagram, the drop area is marked in yellow and covers the area within one club length of the cart path.
If your ball is in the Penalty Area (also a No Play Zone as it is an ESA) you must take a penalty shot when you drop, however, if the ball is in play but your stance is affected by the ESA or cart path, the may take the drop without penalty.