Fly or no?

[AirApparent]

There is a dark red marked off spot near the airport. Obviously I can't fly there. However, I Am in the lighter red circle. Can I fly. Do I have to notify ATC? just would never want to fly anywhere that I would need to notify anyone as I believe it's an unnecessary risk all the way around. Not looking for trouble; just looking to have fun.

 

[N017RW]

Page 41 of the manual covers this as well as a link to a video explaining it further.