PHP can be thought of as createing templates.
A static html document might say at the top of the page
<h1>Welcome Kelly</h1>
Assumeing Kelly is a user, problem being everyone else sees Welcome Kelly too. You would prefer it to say Welcome then the corect username. So maybe you grab the username when they login, you have the username in a variable $user now instead of Welcome Kelly you can
<h1>Welcome <?=$user?></h1>
$user is substituted automaticaly to the corect username for whome is logged in. This is the idea behind dynamic.
Lets say for each user has a table in the database, and it stores the users prefernces, like maybe backgroundcolor = blue. You read this from the database into say a variable $bgcolor. Now your body tag can be dynamic:
<body bgcolor=<?=$bgcolor?> text=red>
Now acording to what the user spesified as their favorite background color, this comes from the databse table, it automaticaly is used.