Yep - it's a Latin word, distancing you from things which might otherwise be misconstrued as mistakes or obvious foolishness in something you're quoting.
In this instance, for some reason the (German) band has the last word in its name in German, Orchester, rather than in English as with the preceding Sound (if the whole name was in German it would be something like Peter Thomas Klangorchester), which makes Sound Orchester look like a typo for Sound Orchestra. So you put [sic] in there to make it clear it's not a typo, and everyone goes home happy and no-one gets shot. Or something.
I'm so glad you said that, I was about to explain that it meant "Spelling InCorrect", as I was terribly reliably informed by a teacher when I was 8 or so. And thanks for the track, I have been meaning to listen to it.
