Mr T-D ... what you are referring to would be considered transplanting but if done very carefully can be accomplished w/ minimal shock ... the trick is to time the removal of the smaller pot to just before it becomes root bound ... but there is only one half way good reason to do this and that's if the soil in the larger pot is too hot for seedlings during the first two weeks of life ... once the inner pot is no longer a seedling, carefully removing it's pot and placing back in the hole (then watering) can be done ... the idea proves you're thinking but generally doesn't work that well in practice ... if you're only doing it to avoid overwatering your seedling then transplant it now and be done w/ it ... if it's a matter of too hot soil check into a a very successful technique called tiering that should have many threads on this board ... good luck w/ your grow ...