It's good form for moderators to defer to someone else on the moderation team. This doesn't have to happen, but most moderators I know feel weird about handling flags on their own content, even if the outcome is very obvious.
If you're ever curious about why a flag had the outcome it did, you are always welcome to ask on your site's meta, where someone, either a user or a moderator, can help give feedback as to why a flag had the outcome it did. In other words, the first check is the community on meta. If the community disagrees with how a moderator handled a particular case, that will become clear on meta, and hopefully result in a change in moderation practices.
However, in your hypothetical: if a moderator becomes intractably volatile and rude, there are definite routes of escalation. The second check is the Community Management team. Community Managers are actual employees of Stack Exchange, responsible (among other things) for the health of each Stack Exchange community. They step in when some issue presents itself that moderators can't handle - including issues with the moderator team itself. Flags won't put you in touch with them, though - to get in contact with a community manager, use the Contact Us link at the bottom of each page. Be sure to express your concerns in clear, succinct detail to get their attention and receive a well-considered outcome/response.