There's no particular significance to this behavior (called bruxism). It is an involuntary movement, and can result in damage to tooth enamel. Sometimes dentists recommend rubber mouth guards to prevent damage to the teeth. Be sure to discuss it with your grandson's dentist (as well as with his pediatrician). One of the dietary habits that can worsen (though it does not cause) bruxism is the ingestion of sugar in the hours prior to bedtime, and this should be avoided. Some suggest that inadequate calcium plays a role, but by no means is this a definite cause.
im 29 years old and still grind my teeth at night when i sleep and have a knowdledge that i do it except for what my husband and my denist have told me i have grinded my teeth for so long that the nerves in my teeth are exposed and its very painfull to eat any sweets and i have to use a special toothpaste for sensitivity..