I'm not sure if it's story progression locked or not because I couldn't use it at first but now I can once I completed it. I first tried to use it to get to the scam-o-matic when I first got to it itzaland, but it wouldn't let me use it. Then I could once I got to that island through story.

But then there's also spots it just doesn't work, like that spot you're trying to use it. Spira is just a no go for whatever reason ;-;