Do you mean the left side cover with three screws that the Ignition is behind? Yes, it runs in oil.
That's actually the ignition advancer and the pulse generators in there. The CDI, or spark units, are under the seat right by the battery. Two little aluminum boxes with fins.
........ looking at the rubber seal on the cover sort of gives it away, Doh
LOL. Yeah. It seems wrong,but if you can look back in there you can see the edge of a main bearing. When you rev one to set the timing it'll plum cover you up with oil. Fun,fun.