Dynamic Link Libraries (DLL's) contain executable program code, which can be run by an application. One DLL may be used by multiple applications simultaneously, but it is only loaded once, so it doesn't "eat" as much memory as a static library would do. A dynamic library can be updated without having to re-link all the applications using it.
Actually, DLL's are saved in one of the different executable formats, and internally marked as a library. The different executable formats are listed in the Executable File section.
Quick Info:
Name: Dynamic Link Library
Type: System
Extension: DLL
Specification: [New Executable] [Linear Executable]
[Portable Executable]
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Alexander Krauss