Dynamic HTML (DHTML) uses a combination of technologies including HTML, CSS, DOM, and scripting to create interactive and animated web pages. It allows changing tags, properties, fonts, and positioning in real-time. DHTML is useful for animating elements, embedding tickers, processing forms without server requests, and including drop-downs. The DOM represents page elements as objects that can be manipulated by scripts. Dynamic styles and data binding also allow quick updates without reloading content. While powerful, DHTML requires complex coding and editing tools and can have browser compatibility issues.