Definition: Dynamic Compression (or Dynamic Range Compression) is a term applied to a feature on many Home Theater Receivers, Blu-ray Disc players,DVD players, and some TVs that enables the consumer to change the relationship between the loudest parts of the soundtrack and the quieter parts of the soundtrack when you are playing a DVD or TV program.

In other words, if you find that the explosions or other loud parts are too loud and things such as dialog is too soft, by changing the dynamic compression setting, you can make it so the sounds of the explosions are not quite as loud and the dialog will sound louder.

This makes the overall sound more even. This is especially useful when playing a DVD at low volume.