Nobody panic! That's the lining attached to the bodice!
I wanted to be sure that the whole thing fit, as the lining is narrow in order to make the whole bubble skirt effect. I hand sewed it to the midriff with a loose running stitch so that when I do the fitting, I will be able to tell if I need to let out the back darts or not.
Next, I have to run a loose stitch through the bottom and the top of the silk outer skirt so I can gather it up when I sew it to the lining. I have decided to do that by hand so it will be looser than machine stitching and give me an easier gather. Also, my machine seems to be breaking the upper thread again and if cleaning out the bobbin case doesn't work, it will be easier to work with a hand sewn gathering stitch.