Firebase Dynamic Links are smart URLs that allow users to link to specific content within a mobile app, even if the app is not installed. When a user clicks on a dynamic link, they are directed to the appropriate app store to download the app, and once installed, they are taken directly to the intended content. These links work seamlessly across platforms, including iOS and Android, and can be shared through various channels like social media or email. Firebase Dynamic Links also support deep linking, which enhances user experience by providing a direct path to relevant content within the app.