I'm suspecting that it splits 1% of the power off to the bias control blocks and allows the remaining 99% of the power through.
This site has some description in a somewhat different context:
https://learn.lightbrigade.com/blog/pon/fiber-optic-tap-couplers-for-fttx-systems
... tap splitters offer a unique solution for low-density
installations. These products can taper the split percentages in
increments ranging from as low as 1/99 percent up to the standard 1:2
(50/50) types. With a tap splitter in place, the cable near the first
subscriber would have a drop cable spliced to the 1% leg of the
splitter, and the other 99% of the optical power would be transmitted
down the span.
As each subscriber would have different attenuation
levels due to the splitter and span variations, a loss budget would
need to be calculated for each subscriber between the OLT and their
ONT. The maximum loss allowed per subscriber would vary as the
distance from the OLT increases. This — along with splitter
attenuation differences based on the split percentage — requires
attention to detail when planning the system.
This first
subscribers on each fiber would use the 1/99 tap splitters until the
loss budget required a larger split percentage such as a 2/98
splitter. The percentages would continue to increase to maintain the
optical power level at the ONT until the last splitter is installed,
which would normally be a 1:2 (50/50) split.