DHTML is not a language but a term that describes making dynamic and interactive web pages by combining HTML, JavaScript, CSS, and the HTML DOM. Events are user actions like mouse clicks or keyboard presses. Event handlers catch these events and execute code in response. There are different types of events for windows, mouse, keyboard, and forms. Events can be used with functions to trigger dynamic behaviors - for example, displaying an alert on the mouseover event or changing text on a click. Buttons and other elements can trigger functions through events to create interactive experiences.