For the average home user?
On a Basic Disk, partitions are static. If you create a 500GB partition, it stays 500GB. If you run out of space, you can't simply glue another hard drive to it to make it bigger without complex formatting.
Distributes data and parity across three or more disks to provide both performance and fault tolerance. Dynamic vs. Basic Disks what is a dynamic disk
This is the gold standard for servers. It requires at least three hard drives. Data is written with parity (a mathematical calculation that allows data to be rebuilt if a drive fails).
Dynamic disks allow for specific volume types that are not possible on basic disks: For the average home user
Distributes data across multiple disks to improve performance, though it offers no fault tolerance.
This is a major selling point for Dynamic Disks. You can take two physical drives and tell Windows to mirror the data. Whatever is written to Drive A is instantly written to Drive B. If you run out of space, you can't
While both store data, they differ significantly in management and compatibility. Basic and Dynamic Disks - Win32 apps | Microsoft Learn