Stop Limit Order to Sell with Limit price higher than stop

You can create such an order. When ABC falls to 9.50, it will be converted into a sell order with limit of 10.50 and the order will not be filled until the bid reaches 10.50. If your intention is to sell at 10.50, just place a limit order to sell at 10.50. There is no reason to wait until the price falls more to place the sell order.

A one-cancels-the-other order (OCO) is a pair of orders stipulating that if one order executes, then the other order is automatically canceled.

An OCO order combines a stop order with a limit order on an automated trading platform. When either the stop or limit price is reached and the order executed, the other order automatically gets canceled.

https://www.investopedia.com/terms/o/oco.asp

Answers of TainToTain and Bob Baerker address your question enough.

And yes, that might be normally correct! However, imagine a high volatility and low float stock such as $BPTH just in the recent few days. $BPTH went up from ~$4.40 to $73.52 and back to $21.00.

In such situations, you may set a sell limit order to take your profit. Because, stock has so much volatility and can in any minute break out to any price, especially when it attracts many traders and gets millions of volumes.

I was watching $TLRY once it was about $120-$150 in a very trendy day. I went out for a coffee and came back $TLRY hit $300, and guess what, the fair share price was maybe around $20-$60.

There are such very rare situations, yet possible, which you mentioned in your question, happens, and make a perfect sense.