That is a dissociating mode, a more mindful one, but still intentionally distancing yourself from your experiences. It works great for improving your perception of yourself and being mindful. Its a meditation.

It also isn't really available in a crisis, in the moment. All our long term work is really to train the anxious idiot part of ourselves who runs the show most of the time how to cope with what the world and body are doing right now. That person is very much connected to their emotions, no matter what story we make up about it. You need practice being that person feeling those emotions as well as practice analyzing them.