The form Hongo shows after fighting against Shocker in Europe for some time. His appearance changed due to the effects of the constant fighting on his physical appearance and acceptance of himself.
In the TV show, this form doesn't seem to be any stronger than the original form of Kamen Rider 1, but with stronger combat power due to Hongo's experience by this point. However, in the movie Kamen Rider vs. Shocker, this form was shown to be able to transform without needing external wind sources.
This version of Kamen Rider 1 is referred to as Sakurajima 1, due to the story arc where it debuted mostly taking place there.