When inspecting data in 3D which has Lat Long for X and Y and meters (or feet) for z the data inspector doesn't handle this very well. The Z axis is treated at Lat Long and so gets greatly graduated.
This is not uncommon and can be quite confusing. Especially for new users.
There is no way of 'fixing' the view without reprojecting the whole dataset. A button in the Data Inspector to view all units in equal units would be pretty nice. This is essentially already done in 2D where all data get reprojected to match the basemap.