Human vision is doing something complicated every second. A camera has to turn that scene into a limited amount of recorded information.
That is where dynamic range becomes important.
What Dynamic Range Means
Dynamic range is basically the span between the darkest useful detail and the brightest useful detail a sensor can record at the same time.
A scene can contain much more contrast than your camera can capture.
That is why you can look at a person standing under a tree with a bright sky behind them and see both the person and the sky reasonably well, while the camera gives you either a dark person or a blown-out sky.
Your eyes and brain are cheating.
The Exposure Problem
When the scene exceeds the sensor's range, something has to give.
You can expose for the highlights and accept darker shadows.
You can expose for the shadows and risk clipping the highlights.
You can change the light.
You can use multiple exposures.
Or you can change the composition.
There is no slider in Lightroom that creates information the sensor never captured.
Why RAW Helps
RAW gives you more usable information for recovering shadows and controlling highlights.
But even RAW has limits.
If the brightest part of the image is completely clipped, there is no secret reserve of detail waiting for you in the file.
What Actually Matters
Dynamic range is not just a camera specification.
It is a composition problem.
When you recognize that a scene is beyond what your camera can comfortably record, you can make a decision before pressing the shutter.
Move. Wait. Change the angle. Use different light. Expose differently.
The best dynamic range recovery is sometimes simply photographing a scene that fits inside the camera's limits.