Your behavior is perfectly normal, and what is expected.
Is your game performance satisfactory to you?
What FPS are you getting in each case?
At full settings, the gpu is the limiting factor and is working very hard to output all the details.
The lower fps means that the cpu does not need to work very hard to keep presenting images to the graphics card.
When you lower settings, the graphics card loafs, and the cpu needs to work harder to keep up with the increased frame rate.
How this works will depend on the game.
Your gpu is relatively a low level card compared to the cpu.
That is fine for cpu limited games. Typically mmo, sims, and strategy games.
If you want to play fast action shooters, then likely a better graphics card would be in order.