Ok so this is to help achieve 'reference' quality at any listening level?
Reference is exactly playback at 0 dBR, with signal EQ and room response exactly flat 20Hz - 20KHz and controlled RT60.
Reality is that, 0dBR is too loud, room response of +/- 5 dB is respectable and RT60 is usually all over the place. If anything, DynamicEQ takes the sound
away from Reference, but closer to 'pleasing' at any level. It is based on the principle that the ear is less sensitive to bass/treble (when compared to mids) and so at lower listening levels the bass has to be considerably boosted to give the same perceived loudness as when played at higher level.
So, that is exactly what DynamicEQ does, as Master Volume is lowered, boost is added to bass and treble.
Ref:
Equal Loudness Curve
DynamicEQ curve to counter ear's sensitivity,
from here,
So, if you add the "cut" in the ear's sensitivity to the boost applied by DynamicEQ, you get a line (perceived room respone) that is closer to flat, at all listening levels.