This is a glitch that Wedarobi and I discovered with this specific loading zone and another one in TTC (might make a video on that soon). Usually, loading zones prevent you from entering them if you're in a damaged state. However, this loading zone and the one in TTC allow you to enter them while damaged, and this lets you skip the death animation. Since it doesn't return you back to the level start pad, it will refill your health when you spawn inside the next room. Nothing really more to this but a quick way to refill your health and it doesn't reset the notes or jinjos. Just a funny glitch.