Here we see the Dynamic filter controls in the Hierarchical filter setup.

The Dynamic filtering is not supported if the selected layout type is “One selection box per level”, it is only supported when the layout type is either “Tree”, “Dropdown list” and “One dropdown list per level”.

The Dynamic filter logic can in many use cases be used instead of the Hierarchical filter logic as the setup is much easier as no relations between variables need to be set up.

The pros of using the Dynamic filtering instead of a Hierarchical filter is the much-improved flexibility as the Dynamic filtering filters the content in “all directions” while the Hierarchical filter requires the data to be organised in a tree structure.

If you, for example, have two variables, Country and Segment, and you create a Hierarchical filter the reporting will use a structure as in the first image below. With this structure it is hard to get the result for Segment A in all countries: you have to select all Segment A nodes in every relevant branch of the tree structure, which will be time-consuming if you have a lot of countries.
If you instead use the Dynamic filtering logic you will have two separated filter lists, see the second image below, and to get the result for Segment A you select Segment A in the Segment list and “No selection” in the country list. 

Image 1, shows the Hierarchical structure.

Image 2, shows a setup with Dynamic filters

Automatic benchmarking is not available with dynamic filtering. When using the Hierarchical filter, it is possible to compare the result of the selected unit to the result of the level above, the other units in the same level, the top unit, and so forth, because there is no explicit hierarchy this logic is not available when using Dynamic filtering.