What does it mean when you wake up from a dream and know your awake but still can see the setting of the dream?

To dream: Dreaming occurs during one particular part of the sleep cycle and we are only aware of our dreams when we awaken in the middle of or at the very end of our dreaming period. It is not unusual to have a sense of the dream continuing after we awaken during our dreams and unless it's causing problems of some sort, it usually has no importance.

Usually not a proble: Some people take a minute or two to transition from a deep sleep with dreaming to being fully awake. This by itself is not a serious problem. If persists for a long time and interferes with your daytime functioning you should speak with your doctor.