Upper story loggias are similar to recessed balconies and do have a traditional precedent. However, they differ from balconies in that they extend the entire length of the building or sub-mass. They are rarely used in northern regions, but are occasionally used in warmer climates where both shade and cooling breezes are desirable. However, even in warmer climates, projecting balconies are much more common than loggias.
Recessed balconies should never be used. Upper story loggias may be used in warm climates under special circumstances, if the architect is sure of achieving a certain effect. However, it is recommended to use projecting balconies the majority of the time.
Below are examples of projecting balconies in Monte Carlo and Taormina, Sicily.
Below is an example of a triple loggia (ground, first, and second floors) in Poznan’s city hall.
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For images for thousands of projecting balconies see https://www.pinterest.com/chrisggallagher/bonny-balconies/?lp=true