Guessing what they mean by show codes on cursor. Showing markdown around the cursor is now in Obsidian, but previously it was in Typora, FoldingText, and a circa 2016 web app called "usecanvas":
Obsidian's editor is "show codes on cursor" by default. As you navigate through the rich text expression it changes to the markdown format that produces that expression. You're always in a line / block of Markdown, but the rest of the document is rendered.
"local modal editing" is most often seen in richer IDE experiences like Darklang v0.2's IDE and the Hazel type-directed-holes experiments.
There are more interesting takes as well (Lighttable's live forms, lots of Vic's experiments) but I'm definitely seeing more instances of the first two experiences these days.
https://github.com/usecanvas
There may be examples prior to that, but that's the earliest that I recall.
I'm not sure what is meant by local modal editing - is that describing what logseq does? It switches a block to plain markdown when you're editing it.
I thought word perfect show codes was in another pane, but it's been a very long time since I've seen it, and I didn't use it personally.