The Mahabharata is called a dynamic text because it evolved over centuries through additions and interpolations. Initially composed as "Jaya" with 8,800 verses, it expanded into "Bharata" with 24,000 verses and finally into the Mahabharata with 100,000 verses. The text addresses diverse aspects of society, including dharma, politics, morality, and human relationships, making it relevant across time and cultures.