looking at the chart on Flickr… you read them right to left and being that it’s on a hat which is in the round, each row represents one round.
So you dont start adding the colour stitches until the 2nd row. That 2nd row you’d knit 11 sts in your background colour, 1 st in a highlight colour of your choice, 2 sts in your main colour, 1 st in your background colour, 1 st in a secondary colour, 1st in your main colour, 2sts in your background colour, 2sts in your main colour, 1st in your highlight colour then 10 sts in your background colour.
When you work around back to this point you’d do exactly the same but look at the 3rd row of the chart.
I’d probably be inclied to just use two colours a solid for the icon and a contrasting colour for the background, that would be less confusing for you. So every time you come across a coloured box you knit with your 2nd colour and when you come across a white box you knit with your overall hat colour.
At Least i’m 99% sure thats how you’d do it!!