" Eventually I fell asleep and dreamed I levitated above my body in a sleep state. I don't quite understand it since I also "observed" some type of body of mine's levitating. "

You are saying that you where "seeing" from both your levitating body and your non-levitating body?

I just had a similar experience a while back....except that when I started levitating I looked around and then was all like -eh, I'm feeling tiered right now, I'm going back to bed- . So uh, you could say my experience was very short lived.