Your discrete port has 2 terminals, let's call them plus and minus.
STANDARD CASE:
If the "minus" terminals of all ports are connected to the same conductor (let's call that "global ground"), we have the standard situation which is easy to understand. If we short one port in schematic, it means that we have a short across the port. If we connect a 10 Ohm to that port in schematic, we have 10 Ohm between the terminals of that port, which in this standard case means 10 Ohm to global ground.
YOUR CASE WITH LOCAL GROUND:
If the "minus" terminal of your port is connected to some other conductor (other than "global ground"), we still get the impedance across the port that is connected in schematic. If we short the port in schematic to schematic ground, this means we create a short across the port. Note that is NOT a short to global ground now, because your port is floating, with no connection to "global ground".
So, indeed an element connected in schematic to ground will be inserted between the terminals of that port. In your example that means the L is in series, across that ungrounded port.
Hope that makes sense now?