
One of my dals developed this at the age of 8 years. It was diagnosed as 'idiopathic trigeminal myopathy'; that's vet-speak for 'something, probably a virus, has damaged the trigeminal nerve on the face and the muscle's wasted away'! Mine was lucky in that it was never bad enough to affect the opening of her mouth. It's never got any worse, and she's 14 now. None of her children (to my knowledge; certainly not the ones that I have) have been affected.
The dents are where the muscles that control the opening and closing of the jaw are located - with the muscles wasted you just have skin over the skull.