low frequency distortion? i'm not so sure about that.
DC offset moves the waveform from the centre (neutral, calibrated voltage) line. it basically just means that the voltage levels of one piece of gear are not agreeing with what the software is expecting to see. So like it you have a positive DC offset of +0.01 volts, it's going to mean that the digital representation on the vertical (amplitude) axis will be offset by that amount.
All it really does it reduce your headroom for gain, because it moves the peaks of the waveform closer to the edge (digital zero).