From Zelda Legends Wiki
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Treasures: Blue Tunic or Red Tunic
Boss: Evil Orb
The Color Dungeon is a dungeon exclusive to the "DX" version of Link's Awakening for the Game Boy Color. It is only accessible on the Game Boy Color, while you are not in the middle of any other game quest such as getting a key to a dungeon. It is not required to beat this dungeon in order to finish the game, as it does not contain an Instrument of the Sirens. However, finishing the dungeon grants you "the power of color," the Blue or Red Tunics that increase your defensive and offensive powers respectively. The dungeon features background music remixed from the dungeon music of The Legend of Zelda. Its major puzzles involve color. In some rooms you must travel on tiles that bounce you and change color, then disappear. In others you must hit switches to change their colors to the same, or throw shelled enemies into matching-color holes.