Dynamic range is the span from the darkest to the brightest tone a camera, a file or a screen can hold, usually given in stops. A sunny street can span 15 stops or more; a typical phone sensor captures around 11 to 13 in one exposure; a standard (SDR) video file and screen show roughly 6 to 8 comfortably. Something has to give, and in a bright scene it is usually the highlights.
HDR (high dynamic range) video keeps more of the top end, using 10-bit values and a transfer curve such as HLG or PQ, and HDR screens can show it brighter than SDR. Most recent iPhones and many Android phones record HDR by default. On an SDR screen, or in an app that doesn’t understand HDR, those clips can look harsh or washed out, because the extra range has to be squeezed into a smaller one.
When you open an HDR clip in this tool, the browser converts it to standard range and the output is SDR. That is often an improvement for sharing: the result looks the same on every device instead of being dazzling on some and flat on others.