I think this ability could have been clearer had it been worded like this:
"You may discard this card. If you do, you may discard an evil non-human, or if Hero is opposed, you may begin a side battle between 2 evil humans."
I've personally been using language in this manner ("You may X. If you do...") for my current playtest cards when I want to do a more complex cost-benefit ability. I will review with the other playtesters and see if this is something we'd like to standardize.