I came across this video on youtube, which mentions Shiva's dance after severing Brahma's fifth head and being explained the nature of what was created; can this story be found in any scripture? Thanks.
Its the incident of KAla-Bhairava.
The origin of Bhairava can be traced to a conversation between Brahma and Vishnu which is recounted in the Shiva Mahapuranam. In it, Vishnu inquired of Brahma, "Who is the supreme creator of the Universe?" Arrogantly, Brahma told Vishnu to worship Him as Supreme Creator. One day, Brahma thought "I have five heads. Shiva also has five heads. I can do everything that Shiva does and therefore I am Shiva." Brahma became a little egotistical as a result of this. Additionally, He began to forge the work of Shiva and also started interfering in what Shiva was supposed to be doing.
Consequently, Mahadeva (Shiva) threw a small nail from his finger which assumed the form of Kala Bhairava and casually went to cut off one of Brahma's heads. The skull (Kapala) of Brahma is held in the hands of Kala Bhairava, Brahma’s ego was destroyed and he became enlightened. From then on, he became useful to himself and to the world, and deeply grateful to Shiva. In the form of the Kala Bhairava.
Reference : https://en.m.wikipedia.org/wiki/Bhairava