Watching yourself from outside, or feeling unreal, is read as distance the mind takes from something too much to feel at once. Symbolically, it marks a protective step back.
Has this come up in your dreams before? What was going on in your life then?
My Cosmic Code has a private dream journal. Write a dream down and the app picks out the symbols in it, shows what dream books say about them and, over time, which words recur across your entries. The journal is stored on your device only.