Must be from a "dime museum" - kind of like combination museum of curiosities and theatrical 'freak shows' like what later would be sideshows in the circus or Coney Island. There would be a stage where the 'performers' would do their thing. Also this might be seen as an early form of Vaudeville which did not exist yet in the 1860s.

Barnum's Museum (which predated when he took his show on the road as a 'circus') was like a super-size version of a dime museum.

I wonder if that wall in your picture was once an exterior wall - does not like the kind of thing people would glue to their room like that unless someone much later than the 1860's put that up on their wall.