The 'little owl little owl flannel story' might be a story designed for kids. Flannel could be used as a medium to make the story more vivid, like using flannel to create little owl puppets or a flannel - made background for the story. It could be about the little owl's growth. The little owl might start as a curious and a bit clumsy youngster. It gradually learns important skills such as flying better and hunting more effectively. And throughout the story, it could also teach children values like courage and perseverance.
In some ways it is. Grey Owl was a real figure, but there might be some elements that have been embellished or fictionalized for the sake of the narrative.
Owl Moon is definitely fiction. It creates a fictional world with characters and events that are not based on real-life facts. The author uses creativity and imagination to weave the tale.