Okay kiddo, a dynamo is a machine that makes electricity.
Imagine a little battery that powers your toy car. The dynamo is like a bigger, fancier version of that battery.
But instead of sitting there with no power like the battery, the dynamo makes its own electricity by using a special trick.
The secret is moving magnets and wires. When you move a magnet near a wire, it makes electricity flow through that wire.
In a dynamo, you have lots of magnets and lots of wires arranged in a special way. When you spin the whole thing around, the magnets make the wires move, and that's what makes electricity.
So, you see, it's like magic: you spin the dynamo around and out comes electricity!