My boss makes me anxious. How do I discuss switching positions within my company?

I’ve been at my corporate job for about 4 years and have the most awkward boss on the face of planet Earth. I didn’t use to be anxious when dealing with my superiors, but 3 years of this guy has turned me into a nervous wreck.

A position in another department opened up and I was asked by the manager of that team to interview. Yay! There’s just one problem. They want me to notify my boss that I will be interviewing for this position.
I need advice on how to approach my boss with this news. I worry that this will only make our relationship more awkward if I don’t get the position and have to continue working for him.

Have any of you had to notify your boss before interviewing for an internal position?

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