What is a safe way to power arduino nano with 7.4V Lipo battery? I'm trying to power Arduino Nano with 7.4V LiPo battery and use it to run 2 DC motor using L293D. I have figured out how power it with the connection just like in the figure below(the diagram uses Uno and the battery is 9V but try to imagine it as Nano and 7.4V).  I also found another way to power it by connecting the red wire from battery to Vin on the Arduino instead of connecting it to the positive power rail.

So, my question is which is a safer way to power it and what is the difference and risk of one the way I mention.
Connect it via the Vin pin. That way the 6-8.4 volt of the battery will go through the voltage regulator on the Nano, giving you a stable 5v.

What you show in your diagram is the wrong way of connecting the battery. The absolute maximum you can supply to the Arduino's 5V pin is 6 Volt. Atmel recommends no more than 5.5V. So your battery exceeds this when it's full.