Yep that's normal
My car does the same.
Max torque on the M62 engine isn't till 3900 so she will happily drop gears to get up there. I know it does get a little annoying on the highway when just a slight rise will have it dropping a gear with a hill dropping back to 3rd and reving its titties off. If it gets on my goat too much i'll manually select 5th gear on the highway improving it somewhat. In manual 5th it will still drop down to lower gears if it really needs too.
I usually don't worry about it too much as the higher revs are easier on the transmission and with these we must look after our transmissions. For piece of mind service your tranny if you haven't already.
The engine and trans in these run very hot and with your scanner I recommend you don't look at the engine and trans temps, it will just upset you.
04 L322 Vogue V8 - Work truck
07 Freelander 2 TD4 SE - The wifes
74 Leyland P76 Targa Florio - Aspen Green
91 Kawasaki GPZ900R
Previous LRs = 78IIa series - 81, 93, 95 RRC - D2V8
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