Hi,
120dB WDR is sensor based WDR. The sensor outputs one set of two or four frames with different exposure times. In this case, the gain can also be set separately for each frame in addition to the exposure time. The set of frames are combinded.
DWDR takes only one frame. The Dark areas in the picture will be made brighter like you could do this in photoshop manually. The qualitiy of DWDR depends on the resolution of the A/D converter. 14 bit is much better than 10 bit.