The arrow from the circle around the checkmark to the 1 starts within the circle, not its border, and its arrowhead pierces the border of the target circle. I would like, instead, for the arrow to run from circle to circle.
I suspect the problem is because the arrow and starting and ending at the borders of the underlying text object, not the circle I've drawn around them.
\documentclass[tikz,border=2mm]{standalone}
\usepackage{amsmath,amssymb}
\usetikzlibrary{arrows,matrix,quotes}
\begin{document}
\begin{tikzpicture}
\tikzset{%
square matrix/.style={
matrix of nodes,
column sep=-\pgflinewidth,
row sep=-\pgflinewidth,
nodes in empty cells,
nodes={draw,
minimum size=#1,
anchor=center,
align=center,
inner sep=0pt
},
},
square matrix/.default=1.2cm,
arc/.style={->,> = latex'}
}
\matrix[square matrix] (A)
{
& $h_0$ & $h_1$ & $h_2$ \\
$t_0$ & & & \\
};
\node[circle] at (A-2-2) (a) {$\checkmark$};
\node[circle,fill=white] at ([xshift=0.3cm]A-2-3) (b) {$1$};
\draw[color=orange] (a) circle(0.4);
\draw[color=orange] (b) circle(0.4);
\draw[arc,color=orange,dashed] (a) to["{\textbf{\scriptsize WP1}}"] (b);
\end{tikzpicture}
\end{document}


