It looks like the relay is shunting the tod wire. To where, I can't tell, from the picture.
It may be that this relay is wired to circumvent the tod warning light.
Did your tod system ever function properly?
I see other wires in your picture. A yellow and another with a solderless connector. Where do those wires go?
I'd suggest removing the silver splice connector on the blue- blue- white wires and then make a good splice of the blue- blue wires, eliminating the white wire that appears to be tapped off of and NOT interrupting the blue tod wire. You should then be able to remove the relay with no adverse effects on the tod system.