dynamic generally means something that is in motion. so if you are dynamically balancing a wheel, it is spinning and you are receiving some sort of feedback as to how the wheel is balanced... our balancer indicates what size weight you should put on the wheel and its location whether it be a clip on or a tape weight.
static is something that is done strictly by measurement w/out motion. like static fitting a golf club includes measuring height, knuckle to ground, size of hands etc.