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Not well.

If you only care about file playback, bit still care about things like HDR and quality audio I would recommend something like the OSMC Vero V instead.

It's still relatively cheap, and open source, but also let's you playback something like a blu-ray rip without loss of quality.

It has the other bonus of not requiring any real setup or maintenance.

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GBM/DRM Kodi supports HDR video on the Orange Pi 5 family. You can grab whatever audio from HDMI or plug whatever in the usb port, the only advantage of this Vero is the optical out.
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The orange pi doesn't do HDR properly. Linux in general doesn't support it natively, and the hardware doesn't provide for it.

On most devices Dolby Vision, etc get downgraded or support only the streaming profiles (profile 5) . If you want full Atmos, Dolby Vision, etc you have to buy one of only a handful of devices. The Vero V is one of them. There are only a few others.

https://osmc.tv/wiki/vero-v/dolby-vision-support/

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Does the optical out actually transcode to 5.1 or is it only proper optical when the source has DD built in ?
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Wrong number, I have no idea.
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Or just buy an old x86 mini pc from ebay, vastly more powerful and less headache.

Mine comes with i5 8500t, 16gb ram and 256gb ssd, and it was like $150.

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