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It is normal. Tegus love to burrow from what I have seen. If there is no place in the enclosure to hide, and retreat. The lizard will find an alternate area which in most cases is under the substrate. Even if there is hides, they usually do this often from what I have seen.
On another note, Since reptiles are ectothermic burying themselves under the substrate will not make them warmer as they have to rely on a heat source(ie: heat lamp, Under Tank Heater etc..) for them to reach optimal tempatures.They can not do it themselves. So he will not do this if he is too cold.
-J
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