Use when emotions are no longer affecting one's judgement, typically the next day. In the cold light of day, she realized the argument wasn't as bad as it seemed.
Pro Tip 2/3
Clarity Gained
Suggests a person has a clearer, more objective understanding of a situation after some time. He saw his performance in the cold light of day and identified areas to improve.
Pro Tip 3/3
Morning Reflection
Often refers to thoughts upon waking, after sleep has provided a break from yesterday's events. In the cold light of day, I reconsidered my decision to move abroad.