The most common and most likely answer to this crossword clue is the 5 letter word PAVAN
I've seen this crossword clue in The Daily Telegraph
P
A
V
A
N
Buddy explains!

The straight part
We know that "Dance" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case dance = pavan.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does PAVAN mean?
PAVAN noun- A native or inhabitant of Padua.
- An imitation coin resembling old Roman bronze coins, made at Padua in the 16th century.
- A stately Spanish dance.