Autodesk CIVIL3D - CIVILDESIGNCOMP 2007 SLM CD Tutorials Manual page 597

The block from SL-8 is shown at an elevation that appears to be above
the surface. The block is projected at the surface elevation where it is
actually located, and not at the surface elevation at the current sample
line. However, the offset value that is displayed in the label reflects
the object's offset value at the current sample line.
Exercise 1: Projecting an Object onto a Section View | 585