Miranda: it is an art style from Oaxaca, yes! It has overlap with the alebrije art form, though that seems to have originated in Mexico City with paper and paste, rather than carved wood.

This form is most known for that intricate bright painting style, along with the individual pieces being carved so tightly that you can remove and replace the relevant bits over and over again without glue or nails. (This piece looks to be all one solid piece of wood, though. Others have detachable wings, legs, porcupine quills, etc.)

It is very pretty!