First, Higgins is an intimidating character, "storming" around, insulting Eliza and telling Mrs. Pearce to burn her clothes. He also tells Mrs. Pearce to "put her in the dustbin" and threatens to "wallop" Eliza if she doesn't behave. With Higgins acting this way, Eliza is frightened and disoriented enough to...
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say she will call the police, especially when she misinterprets some of his speech to mean he might have sexual designs on her. Both Pickering and Mrs. Pearce have to advise Higgins not to swear so much and not to be so bullying towards Eliza.
Second, Eliza is completely unfamiliar with middle-class living. She has never had a real bath, and she is not used to new clothes. Her environment is so different from what she is accustomed to, the demands so outside of what she considers normal, that she is unsettled by her new surroundings. It's not completely simple for a working-class girl like her to adjust to a new way of living and adopt new values. Although this hasn't emerged by the end of Act II, Eliza's new life, and the new way she will come to be treated, as a lady, will throw her into an identity crisis.