I would say it's a vacuum break /backflow preventer. probably a local code thing so water can't be sucked back from the heater in a vacumm situation on the supply
I've never seen one installed like this, but I agree that there's nothing else that looks like that, though if it were a vacuum breaker, it's missing it's bell top (which is an important part of the system). Anyway, a vacuum breaker must be installed at least 6" higher than the highest point plumbed downstream of it. As it is, it's higher than the tank (good), but the red hot water pipe goes up from there, so this vacuum breaker does absolutely nothing [useful]. Had the water heater been in an attic with everything below it, then a vacuum breaker above it might make sense in some AHJ I suppose. In this orientation, you'd need an RPZ valve to fully protect the supply, and an RPZ should not be installed indoors. Also, a vacuum breaker itself probably shouldn't be installed indoors in a part of the system that stays pressurized. It's fine on a faucet, but used like it is here, it's a recipe for catastrophic flooding.
tl;dr: don't copy this picture. It's stupid.