I dunno really! It is soooo cute though, especially a tightly curled sleeping cham's tail, lol! Maybe it has something to do with tucking it in so predators can't grab it. Other than that I haven't got a clue!
Aside from the awesomeness factor, though, I suspect that it is to make them more compact at night--so less likely to be accidentally discovered.
My chams don't roll their tails up until they're ready for bed .