I can't recall a whole story or genre that plays with this concept to such an extent, but I've seen it pop up from time to time in all kinds of fiction.

First example that pops to mind: If you read that completely enthralling and wonderful novel Watership Down by Richard Adams, its told entirely from the perspective of Rabbits, and beautifully so. There are several scenes, especially one featuring their first encounter with a colossal freight train and its engine, described completely from their perspective, with no knowledge of what these man-made machines are. It's right up the alley of the horror concept you mention.