This sentence can is used as a joke, it can be used everywhere when you want to bully someone, you can also use this to joke around with your friends.
Friend: Did you really just threatened me now?
Me: Calm down before you get knocked down.
Friend: damn, ok ok i'm sorry
Knocking can be used as a very versatile word. It could mean joking, failing, messing around, fucking, etc. Meaning is up to context of the conversation.
“you look like an idiot, why you knocking?”
“bitch, are you knocking that guy?”
“girl you have to be knocking right now”