This mainly allows to avoid the problem where parameters cannot be exposed, as the parameters for color are moved outside of the node. This is what makes it "dynamic".
While Gradient (Dynamic) is not a difficult node to use by itself, its usecases are a bit more advanced: most standard usages can be covered by the regular Gradient node.
This node comes in play when you are too limited by the Gradient editor's key system, and want colors and ramp positions to be driven by other inputs, parameters and parts of your graph.
Alternatively, the Gradient Input Position slider can be used to alternate between multiple gradients stored inside a single Ramp input.