Dynamic content is content pulled from stored data instead of manually typed separately into every layout.
In plain English
This belongs to the machinery or experience of a website. You do not need to know how to code it. You need to understand what changes for the visitor, the editor or the person maintaining the site: clarity, speed, accessibility, stability or how easy the site is to change later.
A real example
A product template can automatically display each product’s name, price, image and stock status from the database.
What matters is not whether the technology sounds advanced, but whether the result is felt as a clearer, faster, safer or easier website.
Why it matters
It lets one template serve many items while keeping information editable in the right place.
Technical choices eventually become human consequences. A setting that sounds obscure can decide whether a page loads, whether someone using a screen reader can use it, or whether a future redesign becomes simple or painful. That is the level at which the term becomes useful.
When do you actually need to care?
You need to care when the site is slow, difficult to use, hard to edit, inaccessible, unstable, expensive to maintain or becoming dependent on one fragile technical choice. You also need to care before migrations, redesigns and new integrations, because small technical decisions can become large constraints later.
Useful questions to ask
- What will a visitor or editor notice if this is done well?
- Who is responsible for maintaining it after launch?
- What happens if the technology stops working or needs to be replaced?
What should you do with this?
Ask what changes for the visitor, who is responsible for maintaining it, and what happens if it fails. If nobody can answer those three questions, the implementation is probably more complicated than it needs to be.
What this does not mean
Dynamic does not necessarily mean animated or changing every second.
The short version
Think data flowing into a reusable layout.
Further reading: WordPress developer documentation on templates.