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Earth has a magnetic field. It is modelled as a magnet with a magnetic north pole and a magnetic south pole.  These are different from geographical south and north poles.  

At a location on the Earth's surface we have the magnetic field with a horizontal component and a vertical component. The resultant of the two makes an angle called dip angle with the horizontal direction.

An instrument to measure the dip angle is called dip circle. The needle in the dip circle shows the direction of the effective magnetic field at that location.

DIP angle Variation:

At the magnetic north pole the needle will show 90 deg. (North points away from ground). At the magnetic south  pole dip angle is - 90 deg.  Needle's north points vertically down.  At the magnetic equator, you will have the needle pointing horizontally. There is no vertical component. So dip angle is 0 deg.
As you move from the magnetic equator towards the magnetic pole, the angle increases in the northern hemisphere. In decreases in the southern hemisphere.

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