The WDR function is intended to provide clear image performance in strong backlight areas such as exterior light coming through a window or glass door. High contract light conditions are no longer a problem when you need to capture detailed images.
Backlight is the light behind the object of interest in a scene. Back Light Compensation (BLC) automatically brings more detail to darker areas of an image when bright light shining from behind obscures it and provides perfect exposure for an object in front of very strong back light. The electronic shutter of the camera basically adjusts its exposure to try to allow for more light to be allowed in the darker areas.
It's ability to reverse bright points in the picture to black. As an effective approach to recognize vehicle plate number at night, HLC function can detect any spotlight diffused by object-vehicle and compensate it for obtaining clearer image.
The different between WDR and DWDR, BLC: http://www.unifore.net/analog-surveillance/what-s-the-wide-dynamic-range-wdr.html