The Lumigo Dynamic Dashboard is a new tool that allows users to visualize metrics and monitor their environment in a customizable way, enabling them to uncover hidden insights and risks. By adding "widgets" with custom metrics, users can track essential metrics and scenarios, such as longest-running requests, in an easily accessible dashboard. The dashboard creation process involves running an Explore query, clicking on "Add to Dashboard", choosing properties, and then creating the widget. This tool is available for free in Lumigo accounts, allowing users to quickly get started with tracking their environment's performance.