The orange and green dots that appear on your phone are indicator lights. They indicate the usage of microphone and camera respectively.
What are these lights?
The importance of these lights is to let the users know when their microphones and cameras are in use. Whenever an application or feature in your phone is using the microphone or camera, it starts blinking.
This is a new feature in IOS 14, which is integrated to protect the privacy of its users the Apple. They ensure only trusted sources are using the microphone and camera.
Identifying the source using the microphone
We can easily identify the Source/Application that is using our phone's microphone on the top of the control panel. Swipe down on your screen from the top of the right side to bring up the control panel.
Displayed on the control panel
So whenever an app is using the microphone, for example, say Instagram to record videos or to make reels. The name is displayed on the top of the control panel.
Restricting the access
We cannot turn them off completely, since the feature is inbuilt into the system software. But we can restrict the camera and microphone access of our mobile phone in the privacy settings.
Force restart the iPhone
If you still see the light blinking, even after you are using no app, then you need to force restart your phone to make it go.
Using an external software
If you are unable to make it go, then it could be a software glitch. Use an external software like ReiBoot to update your phone's software using a computer and get it fixed.