Yes, that group law is known. It is a disguised form of a Sylow $p$-subgroup of the automorphism group of the Hermitian curve (namely $\text{PGU}_3(q^2)$), where $p$ is the characteristic of $\mathbf{F}_q$. This group is well understood, for instance it's an extraspecial $p$-group.
For any $\mathbf{F}_{q^2}$-rational point $(a,b)$ on the curve $y^q+y=x^{q+1}$, the map
$$ (x,y) \mapsto (x+a, y+a^qx+b) $$
is an automorphism of the curve. It is known that the set of all such automorphisms forms a group $G$, and that this group $G$ acts faithfully and transitively on the set $S$ of $\mathbf{F}_{q^2}$-rational points on the curve. Moreover, $G$ has order $q^3$, and is a Sylow $p$-subgroup of the automorphism group of the curve.
For any faithful transitive action of a group $G$ on a set $S$, we can pick a point $P\in S$ and identify the group element $g\in G$ with
the point $g(P)\in S$. Then we obtain a group structure on $S$ via $g(P)*h(P):=gh(P)$, where the identity element is $P$. Your group law on the set $S$ of $\mathbf{F}_{q^2}$-rational points is obtained from the above group $G$ by putting $P=(0,0)$.