Shameless plug for my https://blogsystem5.substack.com/p/beyond-the-1-mb-barrier-i... article from a couple of years ago. You'll find a deep dive on unreal mode (I just learned it's also known as "vodoo mode") and some hands-on code to play with it ;-P
Yep. The microcode in real mode segment loading (as shown in the post) does not set the limit to 64KB. That is why returning to real mode with a large value like 4GB in limit gives you "unreal mode".