I was testing the cucumber branch (BGE), bugfixing and polishing and I saw the options “Dynamic Lights” in “Render Settings”, but i don’t know what is exactly, i mean, blender lights aren’t all dynamic lights?
This was a work around for lights that were added to the scene after the game was started in GLSL mode. For example, if you want to use addObject to dynamically add some lights to the scene, it previously would not work. Now you can tell the Game Engine to set aside 10 point lights to use for when a light is dynamically added.
Basically, if you haven’t noticed lights not appearing, then you probably don’t have need for that feature yet. And it is safe to leave the setting alone.