The most common and most likely answer to this crossword clue is the 3 letter word BOP
I've seen this crossword clue in The Times
B
O
P
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 = bop.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 BOP mean?
BOP noun- A very light smack, blow or punch.
- To strike gently or playfully.
- A style of improvised jazz from the 1940s.
- (Oxbridge slang) A party.
- A good song.
- To dance to this music, or any sort of popular music with a strong beat.
- To have sex.