This verse in the beginning of John is talking about
God coming to earth in Christ Jesus.
The Greek word for "dwell" literally means
to "tent" or "tabernacle."
John uses this phrasing to remind us,
along with all those who have read this before us,
that once God physically dwelt among us in the Old Testament.
The tabernacle was His home.
Now, again, God has chosen to dwell with us.
But, instead of living in a tent,
His dwelling was human flesh and bone.
In humility, He became a babe in order to grow
and redeem the world.
He continues to dwell with us, in us,
through the Holy Spirit.