1. A method of operation of a navigation system comprising: determining a travel context based on a route condition for providing a navigation guidance; generating a state template representing a topology of a guidance process based on an availability of a state content, an action type, or a combination thereof to dynamically customize the state template to change the topology by linking additional instance of a state node on as needed basis according to the travel context; generating the state node, representing a state of a state machine, with a control unit based on the travel context, the state template, or a combination thereof; and generating the guidance process based on the state node for presenting a prompt on a device.