What is the meaning behind this behavior?

What is the meaning behind this behaviour?
My dog likes to nibble on things before sleeping mostly towels and bedsheets.
What is the reason behind this and … if this is a negative habit how can we reduce this?

This is not a negative habit but you can provide real bone to him so that he can fulfil his chewing instincts.

Retrievers were used to retrieve dead birds and they also used to defeather the brids, you will see many retrievers tearing up papers or cardboard to fulfill that instincts.

You can use a cloth and tie a lot of knots in that and then provide that cloth to your dog, he will have fun unknotting.

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Thank you thats helpful