Mmm, that sucks...you don't have a target or your target has no raid icon? Try changing targets...does it go away?
Or, do you have any custom settings on your TargetHealth bar? Maybe try un-checking the "show raid icon" checkbox under the TargetHealth module in /icehud settings and re-checking it. I'll see if I can reproduce with reset settings.
It reflects the current target and actively updates, I've tried toggling the icon on and off and moving it. Haven't customized anything in probably months and I think mostly all I changed last time I did do something (back before you picked this up) it was to turn combo points off (I use the HUD to supplement unit frames, not replace). I can send you my saved variables file and a list of what's enabled on the toon I've noticed this on (can check others and prune some out probably) but my add-on stable is huge and don't want to spam the forums. :-P