The well known English proverb is "Let the sleeping dogs lie." It means one should not disturb a situation that is currently calm or settled, because doing so might create trouble that did not exist before. It is commonly used as advice to leave a sensitive or already resolved matter alone instead of bringing it up again.
Option 1, "Sleeping dogs tell lies," plays on the word lie in its other sense of telling an untruth, but this is not the real proverb and makes no sense as advice. Option 2, "Dogs sleeping lie till late," and option 3, "Lie sleeping dogs till the dawn comes," are both grammatically broken versions with the word order scrambled, they are not recognized idiomatic expressions in English.
Only option 4 preserves the exact accepted wording and meaning of the proverb, so it is correct.