The Observer is the Blue Box that appears around modules as you select them on the Right Panel. The observer has 4 parts.
1. The Title of the module
2. Option to navigate to parent components
3. Option to go to Tree View
4. Delete and Duplicate icon.
In addition to the above options, you will also find the option to adjust the Column Padding and also to navigate the Column Layout Manager in a column's observer.
In addition to the above options, you will also find the option to adjust the Row Padding and enable/disable Full-Width Row in a row's observer.