If analyzing stresses you, you can listen and play. But to get a better understanding of how things work, a look at the paper where you can see a longer section of music and have all the time you need to understand what happens can be very useful to incorporate ideas (not only tone sequences) into your own playing.
As always, it is easier if you already have some knowledge of theory and transcribing. And if you can hear and analyse from memory, no transcribing is needed, but there are situations where the section is too long to memorize or the tempo is too fast.
It’s like practicing, you do it slowly at home, so that you understand what and how to do it and can then play that faster and with less thinking with the band.
As always, it is easier if you already have some knowledge of theory and transcribing. And if you can hear and analyse from memory, no transcribing is needed, but there are situations where the section is too long to memorize or the tempo is too fast.
It’s like practicing, you do it slowly at home, so that you understand what and how to do it and can then play that faster and with less thinking with the band.