There are a few different ways and personally I have found that one of the best is to alter your emotions toward what is scaring you in the dream, which can be difficult but is very effective.
Say you're in a dark alleyway, and you see something in the shadows at the end. You can think, "Oh I bet it's a huge monster, or a thug! Help!" and likely, because you expected it to be there, something bad will be waiting for you. Or you could think, "Ah, it's my best friend, that loser. Look at him, trying to jump out at me." or "Aww, it's just a stray cat."
Or even, once something scary is in your dream, just keep telling yourself that it is only a dream and that it can be friendly if you make it so. Try to talk to it, do something like give it a hug or a present and you will be amazed at how quickly you can befriend these scary things
Just try to keep in mind: what you expect is typically what happens in a dream. Having the confidence that you can turn a dream cheery or that something won't hurt you is what you should work on, try to stabilize a dream so that if something scary does happen, you know to just be friendly to it.
Another great way, if you're pretty lucid and confident, is to just ignore it and distract yourself! If you're not paying attention to it, it won't even be there to bother you.
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