Of course it does relate to dynamic range of input amplifiers...
Amplifier will have finite dynamic range, something like full screen plus some reserve headroom... Offset will get summed with input and work to "pull" input signal into dynamic range of amplifier... But it has limits...
as for your calc, 1.8V p-p 10 Hz input signal, plus -800mV offset means you expect to have dynamic range of -2,6V/+1V (3,2V p-p ) on 100 mV/div (1V full screen).
In order to be able to have both negative and positive offset that would need 5,2V dynamic range (+- 2.6 screens ) on 1V full screen range.. That is a lot..
The way I read datasheet, you can have 1 V offset and 1V p-p signal.. Try that, that should work. If it doesn't than datasheet lies.
I agree it looks funny.. My Rigol DS1074Z has no problem with 5,8V/p-p with -2V offset on 100mV/div. It is rated to +-2V on up to 200mV/div.. I read that as 9.8V headroom at 100mV/div..
Old analog scopes worked with higher internal voltages, having larger headroom...