What does convert to dynamic disk mean?
A dynamic disk does not use a fixed-size partition; instead, it uses free space on the drive to store data.
A dynamic disk can be used as the boot volume or non-boot volumes. This versatile and easy to manage system is appropriate for installations in home or small business environments where adding more disks for additional storage and fault tolerance are impractical. Files can be stored on a different set of hard disks that provide better performance than the boot disk, accessed with various RAID configurations, or mirrored onto disks located in remote locations such as offsite backup facilities. The system automatically breaks files up into pieces during operations so that they will fit onto any one hard drive rather than overloading branches on a single drive.
The system also protects against failure in the event of a power outage or catastrophic hard disk damage such as a head crash by maintaining copies of vital metadata on each disk. Although this means that data can survive one branch being damaged, it does not immediately provide full redundancy across all disks. Full protection requires the system to be configured in a mirror or RAID 1, 5, 6, 10 configuration.
Dynamic disks are the default type when you create new volumes on an installation of Windows including Windows Vista and Windows Server 2008 R2