Do's and Don'ts of Applying to Another Group?

I'm going to apply to another group. I'm not sure if my boss was talking about career ops for no reason, or it was a hint hint nudge nudge, go away or a "apply to this job that's a step up and I think you can do it." Anyway, I'm going to throw my hat in the ring should I bring it up?

I don't have a relationship with the boss, so part of me is suspicious. I started looking for another job anyway.