It usually manifests itself in the earlier sleep cycles before they drop into a deeper stage of sleep. Probably 45-90 minutes after falling asleep. You also find that they find it harder to settle and yes they need you there while they are settling. It's reassurance mostly. They do find it most confusing and no wonder, switching your brain off is something most adults struggle with.
It's like when you have a new job or a big test/exam and you can't sleep for the stuff running through your head. You find yourself doing the job in your sleep, waking up with a shout talking about it etc. Sleep's always the first thing to go when learning something new and with a baby, there are some very new and very big things to learn. Trouble is the one new thing then segues into another and you can have a few months of it.
It's still worth clinging onto the fact that it passes. And you find often that they sleep better afterwards due to having a brand new skill which keeps them busy during the day.