So far, we've at least learnt that the demons are created by the dude with the fancy makeup and cool hairstyle. Most of this episode was Aoi fighting her inner demons and Kyouichi being an absolute ass, telling her she's weak and not to get in the way. I'm guessing it's gonna be one of those things where he's actually not an ass and is actually worried about her safety and wants her to stay away from harm, but I could be wrong.