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A method in which to allocate memory for your objects (we're talking computer programming here, people) in a dynamic nature, usually off the heap. This allows conditional creation of objects.

Its utilization is of particular use in the implementation of linked lists, i/o buffers, and various complex node maps.

Implemented in C as malloc(), realloc(), calloc(), and various other derivitives:

   int *dynamic_int_ptr = (int*)malloc(sizeof(int));
   int *dynamic_array = (int*)malloc(sizeof(int)*100);

Implemented in C++ and Java as the operator "new":
C++:
   int *DynamicIntPtr = new int;
   int *DynamicArray = new int[100];
Java:
   Integer integerRef = new Integer(3);
   int intArray = new int[100];

In many HLLs (High Level Languages), most or all memory is dynamically allocated, and usually freed through a scheme of garbage collection or reference counting.