Dancing is called ריקוד. מרקד is a melacha on Shabbos meaning "sifting". We sift the flour in order to separate the good from the bad. So when we dance, we are trying to separate the pure holy side of us from the more base and profane side. We elevate ourselves from the crude earth and enter into a different realm.
There are two basic types of dances. 1] A "Avraham Tentzel" a dance of Avraham Avinu, where it brings out the pure and holy. 2] A "Bilaam Tentzel" which brings out the more coarse side. This is common in discos and the like.
A ger in Bnei Brak once met the Chazon Ish on the street and told the gadol of his loneliness and sadness. The Chazon Ish asked him if he knows how to sing. He replied that of course he does. The Chazon Ish asked him to sing and which he did. The Chazon Ish started dancing in front of this man.
Nora Noraos. The gadol ha-dor dancing in front of this poor lonely man. When people saw this they joined. The streets of Bnei Brak were filled with dancing.
That was a "Avraham Tentzel".
[משכיל לשלמה עמ' קנ"ט]