Dogs may show this signal in different ways. In some cases they just bow
their nose to the ground for a moment. In another cases they are
standing in this position till the problem situation is solved.
A dog is lowers its nose to the ground to smell something. But such action may appear a calming signal. In the order to understand dog actions in a definite case, you need to review the situation in general.
A dog may use this signal noticing another dog or a person that suddenly comes up. If you are walking along the road and somebody is coming up towards you, caring some object, it may alert a dog and it may start smelling the ground. If you will call a dog in an irritated, commanding voice, especially looking at a dog and standing in front of it, a dog will smell the ground over several times before coming up.
It is difficult for people to imitate this calming signal. That's why it is impossible to use it in communication with your dog. But this signal may be substituted by this one: sit down to the ground and pretend you are exploring something or tearing the grass.
Example:
A handler is walking with a large dog along the road. Suddenly they
notice another person walking with a small dog. A small dog starts
barking. A large dog is slowing its moves, stops and lowers its nose to
the ground. It stands in this position till the small dog passes by.
Nylon dog harnesses for comfortable dog walking and dog training: