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Fog of war?
 
Oh that.

No.

/shams
 
It kind of looks like the black areas are hovering above the world creating a sort of parallax effect where it looks like it's in the foreground. I also noticed it kind of looks like the back areas extend all the way upward to the screen, but maybe that's just an illusion or some kind of programming trick.
 
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I don't know how they achieved that line of sight in this game but it looks similar to what I did in one of my game projects where I put a wall (or pillar or similar) and then put a black box ontop of that with the exact measurements and extended the height just past the camera.