Yes, you can use the phreatic mode to simulate the unsaturated zone if you intend use the standard (saturated) groundwater flow equation. In a phreatic mode, the model stratigraphy is fixed and, as a consequence, elements may become dry or partially saturated. In contrast, to the unsaturated mode (Richards’ equation), the calculation of the unsaturated zone is simplified. Further detailed are provided by the FEFOW manual, page 51:
http://www.mikepoweredbydhi.com/-/media/shared%20content/mike%20by%20dhi/flyers%20and%20pdf/product-documentation/feflow%206.2%20user%20manual.pdf
If you solve the groundwater flow equations you solve for the process variable hydraulic head on each node including the unsaturated zone. If you want to discriminate the unsaturated zone from the saturated zone in space, I suggest to use the zero isoline for the pressure (=0 KPa). The zero isoline for the pressure represents a visual replica for water table undulations.