The navy Meta Knight represents the Grim Leecher, a masked enemy who wears a navy blue cloak and floats in the air.
The stage is based on Yoshi's Island, the main setting of Super Mario World 2: Yoshi's Island, which first features the Grim Leecher as an enemy.
The Reversible Controls hazard references the Grim Leecher's ability to latch onto the Yoshi's back, which causes the controls to be reversed.
Other trivia:
This spirit's Grab type and Ramblin' Evil Mushroom ability further reference the Grim Leecher's ability to latch onto a Yoshi's back, causing the controls to be reversed.
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These spooky spirits originally only appeared in extra and secret levels. They’ll knock Baby Mario off Yoshi and hop on in his stead, turning Yoshi purple and reversing the play controls. The only way to knock one off is to ground pound.