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I think he means "like" the AOE circles but just around the player.
Why do you need such a circle? Makes no sense imo as it does not tell you anything game related and would just be a circle. You want to keep a distance to someone? There are addons which show the distance to group members afaik.
And about your question:
Not possible via game's API or at least not that easy, and definately not in dungeons!
One could try to paint a texture on the ground but this be a huge texture which wouldn't show properly all the time as one would need to recalcaulate the size etc. always during each movement. Some of these calculations wouldn't be even possible (or not that I'd know about).
And this would definately be a mess to calculate, keep it updated and trying to manage no serious FPS drops at the same time.
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