I would say it is rather normal for a Bearded Dragon to puff up. As I did research awhile back on the very thing, I detirmined as long as it's not excessive, then it is mearly a good morning stretch, or preperation to shedding or to remove shed.
I didn't see anything to the regard of the Bearded Dragon displaying his beard, unless the OP edited. If that were the case, you'd want to find out what was the issue, most commonly it's a reflection. Never seen a Bearded Dragon puff up, the way I understand yours is, in a manner of defense. Usually a defensive puff up is a flattening of the torso to appear larger, and a tilt towards the offending object to show the back and to hide the fact that the torso is flattened.