The statue from which this small head is broken was probably a private icon. Such icons represent probably a revered, perhaps deceased, relative, overlord or another person, and were displayed in the home or other suitable places and received attention and address from the living. This head was found in an unimpressive private house in a crowded area of the North Suburb: if it originated there, such a fine statue may have been commissioned by the person represented and given to those who were his dependents.
In fact, it has long been discussed whether this head represents a non-royal male or a royal female. The subject wears a type of wig popular among royal women, but not exclusively so - it is also found on officials. The red skin colour would point to a male, but skin colour may not be a reliable indicator of sex in the Amarna Period. If a female were represented, it should be a princess forming part of a group and would be placed in a shrine to the royal family at some home. But the preserved group statues all depict the princesses as young children - whatever their actual age. Given these considerations, it seems more likely the head is that of a male.
