
As others have said, it isn't something to be wary of, but treasured. Dogs "see" with their noses, so he is "looking" at you with his nose, finding out what you last ate, what your ears smell like, what your face & hair are like. He is learning to recognise you in the way that dogs do.... by scent not sight. I see it as a bonding thing more than anything else.
If you want to find out how a dog sees the world, I'd recommend the book by Alexandra Horowitz: "Inside of A Dog" which explores exactly how dogs perceive the world, and us..... a very pleasant and informative read which will open your eyes to many things, and probably bring you a lot closer to understanding the lovely creature that's sharing your life.
And if he chooses to lie with you like that, then that's a close approval - he feels safe, trusts you, and loves the close contact. But he may need a little guidance and training on that score, because dogs don't understand that we get cramps and pins & needles after too much weight on us for too long!