He explains that this is a reference to the secret innermost place within each Jewish soul which is uncorruptible. The Baal HaTanya spoke about the Jewish soul as being forever willing to sacrifice oneself for the sake of the proclamation of the unity of HaShem. The Notzer Hesed is, to my understanding, referring to this point in the soul, the uncorruptible place from which this willingness to self-sacrifice flows.
This is the place from which the pleasing scent of the offerings originate.
We may not understand this idea in its entirety, I certainly don't, but I think we can focus on this for a moment each day, before we begin to pray.
We can stop and remember that no matter where we are in the progress of our lives, somewhere in the deepest reservoirs of our soul is this place that is totally and utterly dedicated to the oneness of God.
Even if we can't find the means to express our desire for HaShem, our soul knows it intimately, at the very core of our being.
We can take comfort in this and take pleasure in it, we can rise from this knowledge to a place of joy and celebration in HaShem.
We can pray from a place of simcha, knowing that our existence is pleasing to HaShem.