The dot space is used to mark arguments since some arguments span multiple lines but are connected. For example, in
Theorem:
. for: x
where: y
then: z
. 'some statement'
the 'for:where:then' group together is one argument, while the 'some statement' item is the second argument. The dot is needed to distinguish from Theorem:
for: x
where: y
then: z
'some statement'
where it is hard to tell where one argument stops and another starts.