This is the “belly button” for those who are not used to the word umbilicus. It is the connection from the baby to the mother’s placenta/afterbirth.
A healthy cord is one that doesn’t smell or weep or bleed – check with your health care professional as soon as possible should your baby have this problem.
Bath times, and diaper/nappy changing times, are the best times to check the cord. Fashions come and go as to whether you should speed up the drying process, and keep the area free from infections, by using some alcohol, not on the baby’s skin, but directly on the umbilical cord – the “stalk-like” bit. As long as the cord stump is checked regularly, it does not need to be interfered with. Just wash the area when bathing your newborn baby, and dry it afterwards.