Mine still both do it. I think its like them saying "im a baby" its cute. Altho they do sometimes do it and then try to bite the grown up horses, little monkeys!
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Mine used to do it when she was pinching food out of the old mare's bucket. The old mare was beside herself with rage, but wouldn't touch her.
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Thats SO naughty!!! But really quite clever!
I have always known it to be called "tooth-clapping" and is totally submissive (if not a little cheeky in some instances!!!
My yearling filly has never really done it but she is a bit of a madam. but my 2 year old Arab gelding does it all of the time but he is a big wimp constantly bossed about by the filly!