Dynamic HTML is what creates life in your website. It allows your website to change its appearance, content, layout and many other things all by itself. You are no longer at the mercy of your site.
With static html, the "code" for a website is written by the "webmaster" and uploaded to a server. When the "websurfer" cruises on in, their computer recieves the code and their web browser translates it and displays the webpage. When using regular html coding, the websurfer gets the exact same webpage, everytime, they cannot set any personal settings, nor can they do much in the way of interacting with the site. This tends to make the site boring and keeps the surfer from checking back often. With static html, the webmaster has completely set the exact content and layout of the website before any surfer ever visits the site.
Dynamic HTML, however, allows the webmaster to create a set of predetermined parameters for the websurfer to interact with. They also can set regular intervals for automatic updates without limits that allow the website to be exciting and different and keeps the surfer coming back. And the best part is that it does it all by itself and the webmaster does not have to do site maintenance all day!!!
Try this to get an idea of the most basic capability of Dynamic HTML: