Dynamic block definitions allow you to edit a block reference outside of the Block Editor. They contain rules, or parameters, for how to change the appearance of the block reference when it is inserted in the drawing.
A dynamic block reference inserts one block that can be edited in several different ways. For example, instead of creating multiple interior door blocks of different sizes, you can create one resizable door block.
You author dynamic blocks with either constraint parameters or action parameters.
In a block definition, constraint parameters
Once the block is inserted into the drawing, the constraint parameters can be edited as properties by using the Properties Manager.
Add Actions and Parameters to Block Definitions
In a block definition, actions and parameters provide rules for the behavior or a block once it is inserted into the drawing.

Depending on the specified block geometry, or parameter, you can associate an action to that parameter. The parameter is represented as a grip in the drawing. When you edit the grip, the associated action determines what will change in the block reference.
Just as with constraint parameters, action parameters can have editable properties that are changed using the Properties Manager.