If you are referring to the "squat" maneuver (more nicely called "the curtsy"), it does look something like that. They crouch and sort of hold their shoulders out a bit, not fully opening their wings very much. They sort of hold them out and down to the ground. Sometimes they will stamp their feet, too.
It's a gesture of submission. In nature, it's submitting to the rooster, so he can mount them more easily.
When my girls curtsy to me, I give 'em a little skritch at the shoulders, another skritch at the base of their tailfeathers, and then a pat on their backs, telling them "Good girls!"
They'll straighten back up and fluff up their feathers afterward. (That moves the rooster's sperm up into their bodies where it will fertilize their eggs.) I prefer to think it's their way of getting rid of "bed feathers" so nobody knows what hussies they are!