I've defined a macro for a simple quadratic bezier curve to connect two points. But, I've also added two parameters to allow you to specify the start and end of the portion of the bezier curve you want plotted.
The command is arguments are
\mybeziercurve[options]{<t-start>}{<t-end>}{<n-start>}{<n-control>}{<n-end>}
where
t-start is a value between 0 and 1
t-end is a value between 0 and 1 (ideally larger than t-start)
n-start is the first node to be connected
n-control is a node to control the effect of the bezier curve
n-end is the second node to be connected
There is also a command to place a point along the bezier curve
\myputnodeoncurve{<pos>}{<node-start>}{<control-node>}{<node-end>}{<new-node>}
where
pos should be a number between 0 and 1
other parameters are as for \mybeziercurve
Please note that this implementation requires that you're using pst-eucl since I'm using pst-eucl's postscript dictionary.
Here's a MWE
\documentclass{article}
\usepackage{pstricks}
\usepackage{pst-plot}
\usepackage{pst-eucl}
\makeatletter
\newcommand{\@my@bezier@curve}[4]
{%
tx@EcldDict begin
%% x coordinate
1 #1 sub
1 #1 sub
/N@#2 GetNode 0 mul add mul
#1
/N@#3 GetNode 0 mul add mul add mul
%--
#1
1 #1 sub
/N@#3 GetNode 0 mul add mul
#1
/N@#4 GetNode 0 mul add mul add mul add
\pst@number\psxunit div
%% y coordinate
1 #1 sub
1 #1 sub
/N@#2 GetNode exch 0 mul add mul
#1
/N@#3 GetNode exch 0 mul add mul add mul
%--
#1
1 #1 sub
/N@#3 GetNode exch 0 mul add mul
#1
/N@#4 GetNode exch 0 mul add mul add mul add
\pst@number\psyunit div
end
}
\newcommand{\mybeziercurve}[6][]
{%
\def\@ParamStart{#2}%
\def\@ParamEnd{#3}%
\parametricplot[plotstyle=line,plotpoints=100,#1]
{\@ParamStart}{\@ParamEnd}{ \@my@bezier@curve{t}{#4}{#5}{#6} }
}
%% a macro to place a node on the curve for labeling purposes
\newcommand{\myputnodeoncurve}[5]
{%
\pnode( !\@my@bezier@curve{#1}{#2}{#3}{#4} ){#5}%
}
\makeatother
\pagestyle{empty}
\begin{document}
\begin{pspicture}[showgrid=false](0,0)(4,4)
\pstGeonode[PosAngle={-135,45,-45},
PointName={default,default,none},
PointSymbol={default,default,none}]
(2,1){A}
(3,3){B}
(3,1){C}
\pstRotation[RotAngle=130,PointName=none,PointSymbol=none]{A}{C}[D]
\pstTranslation[DistCoef=-1.5,PointName=none,PointSymbol=none]{C}{D}{C}[D]
\mybeziercurve[linecolor=black,linewidth=0.4pt,linestyle=dashed]{0}{0.35}{A}{D}{B}
\mybeziercurve[linecolor=black,linewidth=0.4pt,linestyle=dashed]{0.65}{1}{A}{D}{B}
\myputnodeoncurve{0.5}{A}{D}{B}{E}
\rput(E){$\sqrt{2}$}
\end{pspicture}
\end{document}

Something which looks more like what you want
\begin{pspicture}[showgrid=false](0,0)(4,4)
\pstGeonode[PosAngle={-135,45,-45},
PointName={default,default,none},
PointSymbol={default,default,none}]
(2,1){A}
(5,5){B}
(5,1){C}
\mybeziercurve[linecolor=black,linewidth=0.4pt,linestyle=dashed]{0}{0.40}{A}{C}{B}
\mybeziercurve[linecolor=black,linewidth=0.4pt,linestyle=dashed]{0.60}{1}{A}{C}{B}
\myputnodeoncurve{0.5}{A}{C}{B}{E}
\rput(E){$\sqrt{2}$}
\end{pspicture}
Your selection of where to place the control point will allow you to better shape the curve.

You can add the following to your preamble:
%% command to get angle
\newcommand{\mygetangle}[2]
{ !
tx@EcldDict begin
/N@#2 GetNode 0 mul add
/N@#1 GetNode 0 mul add sub
/N@#2 GetNode exch 0 mul add
/N@#1 GetNode exch 0 mul add sub
exch
atan
end
}
And then you can slope the label accordingly using
\begin{pspicture}[showgrid=false](0,0)(4,4)
\pstGeonode[PosAngle={-135,45,-45},
PointName={default,default,none},
PointSymbol={default,default,none}]
(2,1){A}
(5,5){B}
(5,1){C}
\mybeziercurve[linecolor=black,linewidth=0.4pt,linestyle=dashed]{0}{0.40}{A}{C}{B}
\mybeziercurve[linecolor=black,linewidth=0.4pt,linestyle=dashed]{0.60}{1}{A}{C}{B}
%% Setting points to get slope of omitted section
\myputnodeoncurve{0.40}{A}{C}{B}{E1}
\myputnodeoncurve{0.50}{A}{C}{B}{E}
\myputnodeoncurve{0.60}{A}{C}{B}{E2}
\rput{\mygetangle{E1}{E2}}(E){$\sqrt{2}$}
\end{pspicture}

\ncput*was made in hurry with a hot needle. – Click Me Feb 11 at 15:46ncputwithout the star, but you do seem to want a portion of the connecting curve occluded. Can you provide a fuller example to help see how this issue is interfering with another effect? Right now it seems you want two conflicting properties: opacity and non-transparency. – A.Ellett Feb 11 at 15:50\makeboxas in ` \ncput*[nrot=:0]{\makebox[1em]{$2\sqrt2$}}` and not cover as much with the label. Or pair up\makeboxwith\raisebox. – A.Ellett Feb 11 at 15:53\ncput*produce a transparent label but hide the connecting curve inside its hypothetical frame box? – Click Me Feb 11 at 15:53pstrickshides things (like the portion of the connecting curve) by placing opaque boxes on top of each other. It doesn't simply wipe out the curve. – A.Ellett Feb 11 at 15:58