The problem with this description is that a signal into a block that is reserved by a automatic train and thus soon to be occupied will be either red or yellow depending on whether the train that reserved the block will go through that signal or not. For example:
Train is going through signal on the right and it's yellow. The block is not occupied yet, but the signal on the left is red.
It's also unclear if the pass in "Train may (not) pass" refers to the block ahead or the signal itself. Either way the notion that "Train may not pass" on a yellow signal is wrong, automatic trains reserve the blocks ahead of them that their stopping point is going through and in doing so makes it so that they always pass signals while they are yellow.
For these reasons I suggest the wording be changed. Maybe something like
Red: The block ahead is occupied or will soon be occupied. Trains may not pass the signal.
Yellow: The block ahead will soon be occupied by an incoming train. A train is about to pass the signal.
Green: The block ahead is available. Trains may pass the signal.