That's not a second floor.
It is at ground level to the left of the main entry of Pinocchio.
We have sat there on multiple trips. It overlooks the boat entry into the attraction after loading for Small World, but the loading and unloading area of Small World is down a ramp from the load/unload area
This is a picture I took from the wheelchair boarding area of Small World. The ground level entry/ exit ramp is at the middle right of the picture.
The outside of the Pinocchio windows are kind of framed by turret framing in the middle of the picture. Guests in their boats are lower than the windows
World entry
View attachment 854683