DRAM stores each bit as electric charge on a tiny capacitor, with one transistor acting as a switch to the bit line. A charged capacitor is a 1; an empty one is a 0. That "one transistor, one capacitor" (1T1C) cell is about as small as a memory cell gets.
The catch is that the charge leaks away, in milliseconds. So the chip must read every cell and write it back regularly, long before the charge fades. That is refresh, and it's why the memory is called dynamic.
Reading is also a destructive read: connecting the capacitor to the bit line drains it. The chip senses the value and immediately writes it back, so to the user a read looks harmless.
Why put up with all this? Density. One transistor and one capacitor take far less area than SRAM's six transistors, so a DRAM chip holds many more bits and costs much less per bit. That's why a computer's main memory, gigabytes of it, is DRAM.
Like SRAM, DRAM is volatile: without power, the charge is gone.