What is a DLL?
DLL files are binary files that can contain executable code and resources like images, etc. Unlike applications, these cannot be directly executed, but an application will load them as and when they are required (or all at once during startup).
Are they important?
Most applications will load the DLL files they require at startup. If any of these are not found the system will not be able to start the process at all.
DLL files might require other DLL files
In the same way that an application requires a DLL file, a DLL file might be dependent on other DLL files itself. If one of these DLL files in the chain of dependency is not found, the application will not load. This is debugged easily using any dependency walker tools, like Dependency Walker.
There are so many of them in the system folders
Most of the system functionality is exposed to a user program in the form of DLL files as they are a standard form of sharing code / resources. Each functionality is kept separately in different DLL files so that only the required DLL files will be loaded and thus reduce the memory constraints on the system.
Installed applications also use DLL files
DLL files also becomes a form of separating functionalities physically as explained above. Good applications also try to not load the DLL files until they are absolutely required, which reduces the memory requirements. This too causes applications to ship with a lot of DLL files.
DLL Hell
However, at times system upgrades often breaks other programs when there is a version mismatch between the shared DLL files and the program that requires them. System checkpoints and DLL cache, etc. have been the initiatives from M$ to solve this problem. The .NET platform might not face this issue at all.
How do we know what's inside a DLL file?
You have to use an external tool like DUMPBIN or Dependency Walker which will not only show what publicly visible functions (known as exports) are contained inside the DLL files and also what other DLL files it requires and which exports from those DLL files this DLL file is dependent upon.
How do we create / use them?
Refer the programming documentation from your vendor. For C++, refer to LoadLibrary in MSDN.
DLLs (dynamic link libraries) and SLs (shared libraries, equivalent under UNIX) are just libraries of executable code which can be dynamically linked into an executable at load time.
Static libraries are inserted into an executable at compile time and are fixed from that point. They increase the size of the executable and cannot be shared.
Dynamic libraries have the following advantages:
1/ They are loaded at run time rather than compile time so they can be updated independently of the executable (all those fancy windows and dialog boxes you see in Windows come from DLLs so the look-and-feel of your application can change without you having to rewrite it).
2/ Because they're independent, the code can be shared across multiple executables - this saves memory since, if you're running 100 apps with a single DLL, there may only be one copy of the DLL in memory.
Their main disadvantage is advantage #1 - having DLLs change independent your application may cause your application to stop working or start behaving in a bizarre manner. DLL versioning tend not to be managed very well under Windows and this leads to the quaintly-named "DLL Hell".
DLLs (Dynamic Link Libraries) contain resources used by one or more applications or services. They can contain classes, icons, strings, objects, interfaces, and pretty much anything a developer would need to store except a UI.
Let’s say you are making an executable that uses some functions found in a library.
If the library you are using is static, the linker will copy the object code for these functions directly from the library and insert them into the executable.
Now if this executable is run it has every thing it needs, so the executable loader just loads it into memory and runs it.
If the library is dynamic the linker will not insert object code but rather it will insert a stub which basically says this function is located in this DLL at this location.
Now if this executable is run, bits of the executable are missing (i.e the stubs) so the loader goes through the executable fixing up the missing stubs. Only after all the stubs have been resolved will the executable be allowed to run.
To see this in action delete or rename the DLL and watch how the loader will report a missing DLL error when you try to run the executable.
Hence the name Dynamic Link Library, parts of the linking process is being done dynamically at run time by the executable loader.
One a final note, if you don't link to the DLL then no stubs will be inserted by the linker, but Windows still provides the GetProcAddress API that allows you to load an execute the DLL function entry point long after the executable has started.
According to Microsoft
(DLL) Dynamic link libraries are files that contain data, code, or resources needed for the running of applications. These are files that are created by the windows ecosystem and can be shared between two or more applications.
When a program or software runs on Windows, much of how the application works depends on the DLL files of the program. For instance, if a particular application had several modules, then how each module interacts with each other is determined by the Windows DLL files.
If you want detailed explanation, check these useful resources
DLL is a File Extension & Known As “dynamic link library” file format used for holding multiple codes and procedures for Windows programs. Software & Games runs on the bases of DLL Files; DLL files was created so that multiple applications could use their information at the same time.
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http://support.microsoft.com/kb/815065
A DLL is a library that contains code and data that can be used by more than one program at the same time. For example, in Windows operating systems, the Comdlg32 DLL performs common dialog box related functions. Therefore, each program can use the functionality that is contained in this DLL to implement an Open dialog box. This helps promote code reuse and efficient memory usage.
By using a DLL, a program can be modularized into separate components. For example, an accounting program may be sold by module. Each module can be loaded into the main program at run time if that module is installed. Because the modules are separate, the load time of the program is faster, and a module is only loaded when that functionality is requested.
Additionally, updates are easier to apply to each module without affecting other parts of the program. For example, you may have a payroll program, and the tax rates change each year. When these changes are isolated to a DLL, you can apply an update without needing to build or install the whole program again.
DLL files contain an Export Table which is a list of symbols which can be looked up by the calling program. The symbols are typically functions with the C calling convention (__stcall). The export table also contains the address of the function.
With this information, the calling program can then call the functions within the DLL even though it did not have access to the DLL at compile time.
Introducing Dynamic Link Libraries has some more information.
Source: Stackoverflow.com