I have a similar dream frequently, in which I levitate simply by pointing my toes upward, causing me to rise a few feet off the ground. Alternatively, I sometimes fly horizontally like Superman. This has led to the repeated experience of waking up and realizing I can't fly after all, and subsequently dreaming it and realizing "I can fly after all." But there are also times when, after starting to fly in a dream, I recall that this is something I can only do in dreams, and thereby infer that I'm dreaming. Sometimes this induces a creepy paradox feeling that compels me to wake myself up; at other times I'm comfortable continuing in the dream even while knowing it isn't real.

There are also times when I'm in a state close to sleep -- either having just awakened, or having become drowsy later in the day -- when my brain is in a state that makes me feel I should be able to fly. At these times I can't resist trying to "will it," even though I know intellectually that it's impossible.