My interpretation: the figure on the right is using the story of Pinocchio to make a point. The Pinocchio figure is trapped by the wooden material he is made of (it encases his legs). This Pinocchio, however, is a living being, shown by the living flesh he shares with the person perched on the branch. The person views the Pinocchio as merely wearing a 'mask' of life, shown by the fur (belonging to a once live dog) he wears. The dead bird symbolises the death he experiences through society's judgement. Because birds often symbolise freedom and here the bird is dead, this suggests that he feels trapped and not free because he is not viewed as a truly living being. The feather and white bird symbolise his longing to be free from this prejudice. The feather also symbolises his wish to wear the skin of a living animal.
Of course, this isn't just about Pinocchio, it is about the masks all of us wear, and how our appearance can trap and hinder us. We yearn for liberation and freedom from the personas we create to deal with everyday life so that we can have truly honest, 'human' interactions with society, yet the masks we wear are unavoidable and inevitable.