Power zone indicators are visible on the side of the riders names (in the rider list) and below name tags (when they are enabled) above riders heads.
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You can quickly see in which zone each rider is pedaling in.
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You can quickly see when a rider goes into a sprint.
The colors are based on power zones which are based off the riders FTP, this will give you a better understanding of others riding zone in compared to you.
As an example a rider with a FTP of 250 will have their color changing at these points
W/kg number turns red when you hit Zone 6
The W/kg turns red when you go above 121% of your FTP which is then divided by your weight to show your Z6 W/kg. So a rider with an FTP of 250 that weighs 70kg would have their W/kg figure turn red above 4.3W/kg.