I have been noticing with my Ranger that often when attacked by animals the Atronach Absorption visual effect occurs. I am not sure what it is doing as these appear to be mundane combat attacks, unless it is absorbing a disease effect or a stagger. I have also noticed it when be power attacked by humanoids with weapons. Can any console masters check into this or is this a known effect? I have looked on uesp, and searched the forums but can't find anything on it.

edit- to clarify, the weapon attacks have been from normal weapons.

I don't think it's absorbing power attack effects, but Disease, Poison, Spells, and Shouts all fall under the category of Magic, and thus the Atronach Stone can allow you to absorb them.

It also absorbs the Giant's special club attacks and stomp attacks, which is a Stagger Area Attack, also treated as magic.

Spell Absorption is indeed fabulous. In one game, I took advantage of the incredible amount of magicka you get when you absorb disease attack from skeevers to level up alteration very very quickly. You also absorb magicka from being hit by Meridia's laser beam.