A dynamo is an electrical generator that creates direct current using a commutator. The word "dynamo" was originally another name for an electrical generator and was coined in 1831 by Michael Faraday. Dynamos were the first electrical generators capable of delivering power for industry and were widely used in power stations to generate electricity for industrial and domestic purposes. They were usually driven by steam engines. However, dynamos have since been replaced by alternators.
In a more modern context, Dynamo is a visual programming tool that aims to be accessible to both non-programmers and programmers alike. It gives users the ability to visually script behavior and is envisioned as a visual programming tool for designers, allowing them to make tools that make use of external libraries or any Autodesk product that has an API. Dynamo can be downloaded and run in either stand-alone "Sandbox" mode or as a plug-in for other software like Revit or Maya. The source code for the project is open-source, enabling users to extend its functionality.
In summary, a dynamo can refer to an electrical generator that creates direct current using a commutator or a visual programming tool that allows designers to make tools that make use of external libraries or any Autodesk product that has an API.