Imagine you're the camera, the x-axis points to the right, the y-axis points up, and the z-axis points in the direction you're looking. Now imagine that on a display, the x'-axis points to the right and the y'-axis points up.
Then the transform used by nearly all 3D games ever to change a world-space (x,y,z) to a screen-space (x',y') looks like:
x'=x/z
y'=y/z
(In a simple form, anyway.)
Dreams seem to also use spherical coordinates while other games seem to stick to the xyz axis.
That's the FOV. It's certainly wider in the beginning when throwing CSGs around.
I don't think many will agree that a wide angle lens gives a sense of a depth. It's also not something unique to Dreams, although I can't name any other games. But on PC you've had the option to change FOV in a lot of games for yonks.
Dreams is the 1st time that I'm seeing this.