[guided]We begin with a smooth section
\begin{align*}
\sigma: M &\to P/H.
\end{align*}
The intended subbundle is the set of all points of $P$ whose right $H$-orbit is the orbit selected by $\sigma$. Thus we define
\begin{align*}
Q_\sigma = \{u \in P : \rho(u) = \sigma(\pi(u))\},
\end{align*}
where
\begin{align*}
\rho: P &\to P/H
\end{align*}
is the quotient map $u \mapsto [u]_H$.
First we check the fibrewise algebra. For $m \in M$, define
\begin{align*}
(Q_\sigma)_m = Q_\sigma \cap P_m.
\end{align*}
Since $\sigma$ is a section, $\sigma(m)$ lies in the fibre $(P/H)_m$. By the definition of the quotient bundle, every point of $(P/H)_m$ is the right $H$-orbit of at least one point of $P_m$. Hence there exists $u \in P_m$ such that $\rho(u) = \sigma(m)$, and therefore $(Q_\sigma)_m$ is nonempty.
The set $(Q_\sigma)_m$ is stable under the right action of $H$. Indeed, if $u \in (Q_\sigma)_m$ and $h \in H$, then $\pi(u h) = \pi(u) = m$, and the quotient map is constant on right $H$-orbits:
\begin{align*}
\rho(u h) = [u h]_H = [u]_H = \rho(u) = \sigma(m).
\end{align*}
Thus $u h \in (Q_\sigma)_m$.
Now suppose $u, v \in (Q_\sigma)_m$. Then
\begin{align*}
\rho(u) = \sigma(m) = \rho(v).
\end{align*}
Equality in the quotient $P/H$ means exactly that $u$ and $v$ differ by the right action of an element of $H$, so there exists $h \in H$ such that $v = u h$. This element is unique because the original right action of $G$ on the principal bundle $P$ is free, and $H \le G$. Therefore $(Q_\sigma)_m$ is a right $H$-torsor.
The remaining issue is smoothness. A fibrewise torsor is not yet a principal subbundle; we must show that locally it looks like $U \times H$ by smooth $H$-equivariant trivializations. Let $U \subset M$ be an open set over which $P$ is trivial, and fix a principal $G$-bundle trivialization
\begin{align*}
\Psi: \pi^{-1}(U) &\to U \times G.
\end{align*}
Write $\Psi(u) = (\pi(u), \Psi_G(u))$, where
\begin{align*}
\Psi_G: \pi^{-1}(U) &\to G
\end{align*}
is smooth and satisfies $\Psi_G(u g) = \Psi_G(u)g$. The induced trivialization of the quotient bundle is
\begin{align*}
\overline{\Psi}: \bar{\pi}^{-1}(U) &\to U \times G/H,
\end{align*}
with
\begin{align*}
\overline{\Psi}([u]_H) = (\pi(u), \Psi_G(u)H).
\end{align*}
Because $\sigma$ is smooth, its expression in this quotient trivialization has the form
\begin{align*}
\overline{\Psi}(\sigma(m)) = (m, f(m))
\end{align*}
for a smooth map
\begin{align*}
f: U &\to G/H.
\end{align*}
The projection
\begin{align*}
q_G: G &\to G/H
\end{align*}
is a smooth principal right $H$-bundle, so it admits smooth local sections. Therefore, after replacing $U$ by a smaller open neighbourhood $V \subset U$ if necessary, there exists a smooth map
\begin{align*}
\ell: V &\to G
\end{align*}
such that
\begin{align*}
q_G(\ell(m)) = f(m)
\end{align*}
for every $m \in V$.
We now describe $Q_\sigma$ over $V$. A point $u \in \pi^{-1}(V)$ belongs to $Q_\sigma$ exactly when
\begin{align*}
\rho(u) = \sigma(\pi(u)).
\end{align*}
Applying the quotient trivialization gives, with $m = \pi(u)$,
\begin{align*}
(m, \Psi_G(u)H) = (m, f(m)) = (m, \ell(m)H).
\end{align*}
Thus $\Psi_G(u)H = \ell(m)H$, which is equivalent to the existence of a unique $h \in H$ such that
\begin{align*}
\Psi_G(u) = \ell(m)h.
\end{align*}
This proves that $Q_\sigma \cap \pi^{-1}(V)$ is parametrized by $V \times H$.
Define
\begin{align*}
\Theta_V: V \times H &\to Q_\sigma \cap \pi^{-1}(V)
\end{align*}
by
\begin{align*}
\Theta_V(m,h) = \Psi^{-1}(m,\ell(m)h).
\end{align*}
The map $\Theta_V$ is smooth because $\Psi^{-1}$, $\ell$, and multiplication in $G$ are smooth. Its inverse sends $u \in Q_\sigma \cap \pi^{-1}(V)$ to $(\pi(u),h)$, where $h \in H$ is the unique element satisfying $\Psi_G(u)=\ell(\pi(u))h$; this inverse is smooth because in the trivialization it is just
\begin{align*}
(m,\ell(m)h) \mapsto (m,h).
\end{align*}
Finally, $\Theta_V$ is right $H$-equivariant:
\begin{align*}
\Theta_V(m,hk) = \Psi^{-1}(m,\ell(m)hk) = \Theta_V(m,h)k
\end{align*}
for all $m \in V$ and $h,k \in H$. Therefore $Q_\sigma$ is locally a smooth principal right $H$-bundle over $M$, embedded in $P$ as an $H$-equivariant subbundle.[/guided]