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Dynamic range is a measure of the range of tones the sensor can capture. Cameras with low dynamic range will often show 'blown' highlights or blocked-in shadows. This test is carried out in controlled conditions using DxO hardware and analysis tools.
Dynamic range is measured in exposure values (EV). The higher the number the wider the range of brightness levels the camera can capture. This falls off with increasing ISO settings because the camera is having to amplify a weaker signal. Raw files capture a higher dynamic range because the image data is unprocessed.
Canon EOS 760D dynamic range charts
JPEG dynamic range analysis: The 760D has a good, but not group leading dynamic range until sensitivity reaches ISO 1600, where it starts to show an advantage. This indicates that the 760D captures a wider range of tones than the competing cameras at higher sensitivities.
Raw* dynamic range analysis: The 760D's raw dynamic range is only average. The Nikon D5500 is better up to ISO 800 and the Pentax K-S2 which captures a wider brightness range past ISO 3200.
