Dynamic range is the span between the darkest and brightest tones that a camera, film or display can record or show while keeping detail. It is usually measured in stops. Each stop doubles the amount of light.
When a scene's brightness range is wider than the camera's dynamic range, the shadows turn black or the highlights become pure white (clipping). The human eye, which constantly adapts as it looks around a scene, can usually handle a wider range than a single exposure. Photographers use careful exposure, graduated filters or HDR to deal with this.
Do you have a better definition? Share it in the comments.