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A dynamic website is a site that has information that changes and can be easily updated. Most sites that are dynamic have a combination of static (fixed information) and dynamic information.
A good example of the use of a dynamic page is with the displaying of news. News is usually changing, sometimes it changes daily. If your business has news that changes on a regular basis, we would make your news page dynamic. We would provide you with a private and secure login page that would allow you to enter news information using your browser. This information would get stored in a SQL database when you clicked Save. Then, when a visitor to your site looks at your news page, the page would get a list of all the news from the SQL database and show that to the visitor. News is just one example. This approach can be used for any type of information.
In a nutshell, that's all a dynamic website is; A website that contains information that can easily be changed by you.
Learn more about different websites by reading about Storefront Websites or Get an Estimate.