Subsubgroups are subgroups of subgroups / Multiplicative Property of the Index
The folklore is true: $K$, a subset of a subgroup $H$ of group $G$ and a subgroup of $G$, is a subgroup of $H$!
One hint we know it's true is that the above linked Tower Law for Subgroups (the difference there is that $K$ is a subgroup of $H$ is assumed and that the folklore there is that $K$ is a subgroup of $G$) has similar proof to Artin for Prop 2.8.14 (and these: 1, 2, 3).
Proof that $K$, a subset of a subgroup $H$ of group $G$ and a subgroup of $G$, is a subgroup of $H$:
Subset: $K \subseteq H$ by assumption.
Closure: Let $k_1,k_2 \in K$. Because $K \subseteq G$ is a subgroup of $G$, $k_1k_2 \in K$, which is the same requirement of closure for $K \subseteq H$ to be a subgroup of $H$.
Existence of Identity: Because $K \subseteq G$ is a subgroup of $G$, $K$ has an identity $1_K$, and, by Exer 2.2.5, $1_K$ is the identity of $1_G$, i.e. $1_K=1_G$. Because $H \subseteq G$ is a subgroup of $G$, $H$ has an identity $1_H$, and, by Exer 2.2.5, $1_H$ is the identity of $1_G$, i.e. $1_H=1_G$. Therefore, $1_K=1_H$, i.e. $K$ has an identity, and it is the identity in $H$.
Existence of Inverse: Let $k_1 \in K$. Because $K \subseteq G$ is a subgroup of $G$, there exists a $k_3 \in K$ s.t. $k_3k_1=k_1k_3=1$, which is the same requirement of existence of inverses for $K \subseteq H$ to be a subgroup of $H$.
QED
Note: Unlike in the analogues below, we used that $H$ is a subgroup of $G$.
Are connected subspaces of connected subspaces are connected subsubspaces?
Are compact subspaces of compact subspaces are compact subsubspaces?
Are subsubspaces are subspaces of subspaces?
I'm open other proofs that do not use that $H$ is a subgroup of $G$.
Proof of Prop 2.8.14:
By twice application of Counting Formula (Formula 2.8.8) with what we just proved, we have that for finite orders
$$[G:K] = \frac{|G|}{|K|}, [H:K] = \frac{|H|}{|K|}, [G:H] = \frac{|G|}{|H|}$$
Therefore, the result follows.
For infinite orders, it looks like we'll have to use the kind of proof with listing the cosets.
QED