Danger lurks nearby.

Meaning: This means that there is a situation that is likely to cause harm or injury that is close to the speaker or to a particular place. It's a warning that indicates that danger is present.

Choice of Words: Danger is a noun that refers to a situation that is likely to cause harm or injury. Lurks is a verb that means to lie in wait in a hidden or menacing way. Nearby is an adverb that means close to the speaker or to a particular place.