A two-phonon version of the relativistic quasiparticle time blocking approximation introduces as a new class of many-body models for nuclear structure calculations based on the covariant energy density functional. As a fully consistent extension of the relativistic quasiparticle random phase approximation, the relativistic two-phonon model implies fragmentation of nuclear states over twoquasiparticle and two-phonon configurations coupled to each other. In particular, we show how the lowest two-phonon 1 − state, identified as a member of the [2 + ⊗ 3 − ] quintuplet, emerges from the coherent two-quasiparticle pygmy dipole mode in vibrational nuclei. The inclusion of the twophonon configurations into the model space allows a quantitative description of the positions and the reduced transition probabilities of the lowest 1 − states in tin isotopes 112,116,120,124 Sn as well as the low-energy fraction of the dipole strength below the giant dipole resonance without any adjustment procedures. The model is applied to the low-lying dipole strength in neutron-rich 68,70,72 Ni isotopes. Recent experimental data for 68 Ni are reproduced fairly well.