LZW31-SN mimic relay dimming behavior in hubitat

When the relay is enabled, the LED on the LZW31-SN will fade the upper portion of the LED to black to match the switch level.

When the relay is disabled, is there a way to mimic this behavior using Rule Machine, etc on hubitat? Or is this manipulation of the LED coupled to the relay only?

As a simple example could I say “Turn the LED on halfway when I double tap a button”. It’s a contrived example, I’ll actually use it for dimming levels on smart bulbs.

Not with the current firmware and with the dimmer wired in a standard configuration, no. They have hinted that they are open to exploring new ideas for “smart bulb” mode with these, and that could be part of it. Otherwise, you might be able to unofficially make this work by wiring line to load (so the load doesn’t pass through the dimmer and the lights always get full power) and literally adjusting the dimmer level as needed (with or without local control enabled, however/wherever you prefer to handle this, “mirorring” from the bulbs to the dimmer or vice versa). Note that this may not be to code in some regions (I am neither an inspector, electrician, nor attorney) and will prevent the air gap switch from working.