Dynamic range is a topic that can be really hard to get to grips with, but when it's explained well, it's easy to understand
That's what Iain Anderson of Training Brisbane does nicely in this video. Don't be too alarmed by the waveform displays.
Just look at how much information you can lose if your camera can't handle highlights. We'll be carrying more in-depth articles about dynamic range in RedShark, but meanwhile, this is a good, very basic introduction.