Step 1: Trace the sign to its mechanism. Munson's sign needs a cornea shaped like a cone, which is exactly what occurs in keratoconus.
Step 2: When the patient with keratoconus looks down, the protruding apex pushes the lower lid into a sharp angular bulge, and that lid contour is Munson's sign.
Step 3: Keratoconus also gives a Fleischer ring, an oil-drop reflex, a scissor retinoscopy reflex and progressive irregular astigmatism, all consistent with a thinning ectatic cornea beginning around puberty.
Step 4: A corneal ulcer causes an infiltrate, pterygium a fleshy conjunctival growth, and posterior staphyloma a backward scleral bulge - none indents the lid on downgaze. Hence the diagnosis is keratoconus.
\[\boxed{\text{Keratoconus}}\]