I'm not familiar with the tree, but if it were an apple tree I would think it was some sort of aerial root growth.
Do you know if the tree had been grafted? I think that, or other damage, can sometimes lead to roots growing out of the ground.
I don't think it is anything to worry about. I suppose if it not a grafted tree and you wanted to propagate it, you could try wrapping the trunk with damp moss/soil and see if you can get it to root properly and then cut below the growth. If you ignore it, it just looks a bit unsightly, but otherwise shouldn't be a problem I think.
Hello,
I have seen a rather similar, but definitely different, growths on the trunks of oak trees in California. I ultimately identified them as a type of parasitic plant. The knobby knot with outgrowths on your tree is similar to what I saw, and similar to an abbreviated mistletoe. Perhaps research parasitic plants found in your area that occur on trees of that type.