Well, this is the way - and it's convenient. I have to use DialogService from RadzenDataGrid in my project too, I'm doing it right as I'm writing this comment.
Thanks again Iliyan. I have used DevExpress controls in the past, and they had specific templates for edit forms and properties that made it a popup. Not able to comment yet on which approach is better (and not sure anybody would be interested), just wanting to make sure that I was not missing something and implementing this functionality in a way that was not intended.