That's a 16 color, any color any pixel display 160x200.
Some PC games offered this option. It should have been in the CGA spec. For memory reasons, 1 and 2 bits per pixel were common. However, the same amount of RAM offers the full color set at a reasonable, if modest, resolution. (For the period)
16 colors on a 160x200 display was considered "nice" at that time, and having it be official would have improved early PC gaming considerably.