It's a thermostat sensor for a heat recovery unit. Do you see any cut off or closed off copper pipes in any of the walls close to the tank? Commonly called an HRU (Heat Recovery Unit) I believe. There should be two other copper pipes in the area that lead to the heat pump outside the house. Used to have 2 in my house. During the summer, your A/C heat pump draws heat from the house and exchanges it with the outside air. With a HRU water heater, it uses that Heat from your A/C unit to heat your water in the tank before it heads to the outside unit. It measures the heat in the tank via that thermometer in your picture. If the tank gets to the set temperature, then the heat (freon) from the A/C bypasses the water tank and heads to the outside condenser. It's a form of green energy and for a while you could get rebates for installing them in the house.
Problem is you need some special license to put them in or have to call the A/C guy to remove the freon, plumber to change the special tank out, then have him come again to recharge the freon. It makes your water tank and outside condenser more expensive and. They have slowly gone away even though they can save you a lot in water heater bills in the South during the Summer. Having one tied to a modern heat pump often voids the manufacturer's warranty on the heat pump. A family of 4 saves like $100 per year in hot water heating. A new condenser with a voided warranty costs more than that to replace.