If I understand correctly, it will just pop that up if a comment is reported in the thread you're currently viewing, as Lemmy auto-refreshes everything going on in the thread you're viewing.
this post was submitted on 15 Jun 2023
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That's a little bit confusing to idiots like me...
Yeah, to me it seems like that would be helpful to someone who's a moderator on that community or an instance admin, but I've seen it mentioned by several other people that anyone actively viewing the thread will see that notification, no matter their moderator status or lack thereof.
Perhaps it could be a bug with the Lemmy backend software?
(I just got the "Report created" notification while typing this reply, as well! Strange!)