In a literal sense, this phrase means that you and your partner have not officially broken up, but decided to take a break from each other, agreeing to take a break from the relationship. As both wisely suggested, the time apart will give you the opportunity to reflect on the existing relationship, reevaluate your feelings and make a decision: either stay together or still break up.
With clear advantages, a break in a relationship also has obvious disadvantages. The main downside is that taking a break from each other can be a pain-killing reprieve from an impending breakup. Such thoughts come to mind if you decide to pause in a relationship after a major quarrel - the impressions of the conflict are still fresh and therefore you can’t believe that it will be possible to restore the previous contact.

“When negotiating a pause in a relationship, you need to understand why this is being started, and how to behave in order to suffer less,” says Dr. Gasumyan. The break delays the inevitable collapse, but at the same time prolongs the pain, sadness and / or guilt associated with the situation. Thus, a pause in a relationship becomes not only a saving buffer, but also a productive source of stress and anxiety. Knowing the impressionability of lovers, it is easy to predict that the questions “where is he/she?”
Successful interaction with a loved one is based on the habit of sincere dialogue. If you're seriously considering taking a break from your relationship, take care of the right entry into your days of independence: talk openly and honestly with each other and set ground rules. At the same time, both of you should have a similar vision of the reasons for separation, as well as what you hope to achieve.