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Dynamic range is a measure of the range of tones the sensor can capture. Cameras with low dynamic range will often show 'blown' highlights or blocked-in shadows. This test is carried out in controlled conditions using DxO hardware and analysis tools.
Fuji X-T10 dynamic range charts
JPEG dynamic range analysis: As we have seen before with Fuji X-series cameras, the X-T10 produces files that have a compressed dynamic range. While this makes them look good, with pleasant mid-tone contrast and enhanced detail, they don't score especially well in this test. You also need to keep an eye open for lost highlights in some situations.
Raw (converted to TIFF) dynamic range analysis: The X-T10's raw files have a much wider range of tones than the JPEGs, giving greater scope for adjustment of contrast.