Yeah, Optifine allows for custom models being assigned to items when renamed, for example, renaming Oak stairs to "Chair" changes the model to a chair, and then putting it into an item frame, essentially allows you to place the model onto the ground.
Sorry, i can't really explain it much, i'm not really experienced with this kind of stuff.
Essentially, every thing in here that is not something you'd normally see in Vanilla is a Custom Item Texture, being placed into an item frame. I guess that's the best way i could put it. I have no clue what's causing this error, though.