Ethanol-free, 89-93 octane, pump dispensed gasoline is as good as as you can do for small two-cycle engines these days, with 91 being about as perfect as it gets (I'm not talkin' 'bout high-performance, modified engines). A higher octane is not needed, will reduce performance slightly, and is usually more expensive... octane ratings higher than 93 are actually a waste (unless that's all you can get E-free). Octane ratings lower than 89 will usually reduce performance in most small two-cycle engines (and so will ethanol at any octane rating)... and lower octane has the potential to cause damage in a variety of ways. Ethanol, compared to gasoline, is lower in energy and higher in octane... it really is horrible motor fuel, especially in small engines, even at a 10% blend.
Octane has nothing to do with the energy content of the fuel, a gallon of gas contains the same mount of energy no matter the rating... it's simply the way a fuel's resistance to ignition is rated. (A 10% ethanol blend has less energy than straight gas.) A low octane rating will (sort'a) advance ignition timing slightly, a high octane rating will retard it slightly... the trick is to match the octane rating to the performance level of the engine. Normally an engine can efficiently use a small range of octane ratings (in this case, approximately 89-93) by making small adjustments to timing and/or fuel delivery rate (carb adjustments).
Oh... I use ethanol-free, 91 octane, pump dispensed gasoline in all the two-cycles (except the low-RPM 250cc 1974 Harley golf cart), and ethanol-free, 87 octane, pump dispensed gasoline in all the four-cycles (and golf cart). I do not buy ethanol-blended fuel for anything... ever... period.
*