also, does it rev when turning the handle bars?? alot of times the cable gets pinched?? process of elimination.. My 350 warrior did this..Agree^^^^ also check the throttle cable for pinches, scuffs or stiffness in the cable.
I also realize this thread is ancient but I'm having the same issue with my '82 ATC 110 and as you said there is no answerFirst off I realize this thread is old; however, there is no answer and it comes up when I google my issue. Hopefully, I can provide a confirmed solution.
I got the same problem with Honda ATC 110 Model 1984. When I drive in gear it's fine drop to neutral and it revs way up. Also noticed if it's rev'ed there is noticeable lag before it idles down again. That being said, I think it could be the old throttle cable sticking. I'm replacing it and if it fixes it I will post that.