Not sure what this was?

At some point during last night I woke up, and from there started thinking of a scene in which I would try and dream about. It worked as a proceeded to dream about it, however I realized I was dreaming but I think I may have also been concious since I could feel my hand on my chest, but I couldn't move and kept dreaming. But I knew I was dreaming but it didn't really set in so it wasn't really lucid.

I wasn't sure what this was, It might have had something to do with the fact that I didn't go to bed until around 10:30 that morning after staying awake all night.

Sounds like you became lucid and then woke up because of it. That's common when starting out, just keep at it and that will stop happening. And what you did where you thought about the dream you wanted is called dream incubation :)

The more experienced one is with lucid dreaming, the more one can simply slide into them when going to sleep. One remains fairly aware during the whole process. In the start, however, one might become alarmed because of the transition from reality to the dream-state, it is out of sync with one's mind set of knowing the transition is taking place.

further down the road, the same transition will take place between the lucid dream-state and waking.