Dani Charlotte Dyer was born to parents Joanne and Danny Dyer on 8 August 1996 in the London Borough of Newham. She has a younger sister Sunnie and a younger brother Artie, and worked as a barmaid in Loughton, Essex before appearing on television.

Dyer made her professional screen debut as an extra in the 2006 film The Other Half alongside her father. She also appeared as an extra in other films starring her father, including Doghouse (2009), Run for Your Wife (2012) and Vendetta (2013). The producer of Vendetta stated that she “absolutely blew away” the crew. She then independently appeared in films including We Still Kill the Old Way (2014), Age of Kill (2015) and Bonded by Blood 2 (2017). In 2018, she was announced as a cast member for the ITV2 reality series Survival of the Fittest, but walked from the series on the second day due to dislocating her shoulder. Later that year, she competed in the fourth series of ITV2’s Love Island. She won the series alongside Jack Fincham with 79.66% of the final vote. Following their Love Island win, Dyer and Fincham starred in the three-part ITVBe reality series Jack & Dani: Life After Love Island. In 2019, she began appearing as a guest reporter on The One Show, and in 2020, she launched a range of lip products with Vaseline. Later that year, she began co-hosting a podcast with her father, titled Sorted with the Dyers.

Dyer was in a relationship with Sammy Kimmence prior to appearing on Love Island. While on the series, Dyer was in a relationship with Fincham; the pair split in April 2019. Later that month, Dyer and Kimmence were pictured together and it was reported that their relationship had been rekindled, which was later confirmed by Dyer. On 28 July 2020, the couple announced via social media that Dyer is pregnant with their first child, due in 2021.