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It happens when you start building backlinks to a site, let's say you build some backlinks with the anchor text "wjuction rocks my world", your site will then start moving up/down the search ranks until it stabilizes at a certain spot. The google dance is basically when a site is all over the place for a certain time in the search engines for a certain keyword.

You can google more info about it if you want a more "professional" description.
 
Google dancing means your targeting keywords goes first or second page to last page and again last page to fifth or sixth page is called google dancing.
 
The term "Google Dance" is used to describe the period when the Google search engine is rebuilding its rankings. And because of this, the results fluctuate for some days. It describes the period that major index updates of the Google search engine are being implemented.
 
In search engine optimization (SEO), Google Dance is an out-dated slang term used to describe the period of time in which Google used to rebuild its rankings, and as a result of this rebuilding, rankings of Web sites on Google's SERP may fluctuate in order during a several day period.
 
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