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Vestibular disease, which becomes more common as a dog ages, causes a dog to walk in circles. Parasites, systemic lupus erythematosus, encephalitis, canine distemper and fluctuating blood sugar levels may cause a dog to walk in circles. Brain tumors, also called meningioma, can cause a dog to walk in circles.
Answer Wiki. A dog can walk in circles to make a bed comfortable to sleep in (this should be just a few circles before laying down) but this can also be a sign of a neurologic condition. It is impossible to tell whether this is normal for the dog or not without a thorough neurologic examination by a veterinarian. Views.