A conscious state is a higher-order thought
A conscious state occurs when a thought is directed at a lower-level mental state. Self-consciousness occurs when a third-level thought is directed at the second-level thought.
For example, a state of happiness is a first level mental state, the thought "I am happy" is a second-level conscious mental state, and the thought "I'm thinking about being happy" is a third level conscious state.
David Rosenthal (1986).