Dynamic Input in the Sketch environment provides a Heads-Up Display (HUD) interface near the cursor to help you keep your focus in the sketching area. In Inventor 2011, Dynamic Input has been enabled for the most commonly used sketch commands.
When Dynamic Input is on, value input fields near the cursor display information that is dynamically updated as the cursor moves. When a Line, Circle, Arc, Rectangle or Point sketch command is active, the value input fields provide a place for user entry. You can toggle back and forth between the value input fields by pressing the TAB key.
By default, most values are entered using Polar coordinate entry by specifying the distance and angle of sketch elements. However, the Rectangle and Point commands use relative X and Y Cartesian coordinates. After entering the first value, press TAB to display a lock icon in the field which constrains the cursor by the value that you entered. You can then enter a value for the second and subsequent input fields and press TAB to lock those values also.
Once the sketch values have been entered in the value input fields to your satisfaction, press ENTER to place and automatically dimension the sketch element.
Persistent Dimensions:
The function that automatically creates and places sketch dimensions in Dynamic Input is called Persistent Dimensions. If you wish to place dimensions manually, as with previous versions of Inventor, persistent dimensions can be toggled off by clicking the down arrow on Sketch tab
Constrain panel Persistent Dimension 
on the ribbon. Persistent dimensions remain disabled until toggled back on.
Persistent dimensions can also be turned on and off using the Heads-Up Display (HUD) settings on the Sketch tab in the Application Options dialog box.
Pointer Input:
When Pointer Input is on, the starting point for a sketch element is displayed as Cartesian coordinates (X and Y values) in a tooltip near the cursor.
The default for second and subsequent points is relative Polar coordinates (length and angle).
Disabling Pointer Input turns off the Cartesian coordinate display of the starting point of a sketch element. Second and subsequent points are still displayed in the value input fields, however.
The Pointer Input Cartesian coordinate display may be switched to a Polar coordinate display, or toggled off completely, using the Heads-Up Display (HUD) settings on the Sketch tab in the Application Options dialog box.
Dimension Input:
When dimension input is enabled, the value input fields display polar coordinate (length and angle) values when a command prompts for a second point. The dimensional values change as you move the cursor. Press TAB to move to the value you want to change.
Dimension Input polar coordinates can be switched to Cartesian coordinates using the Heads-Up Display (HUD) settings on the Sketch tab in the Application Options dialog box.
Dynamic Prompts:
When dynamic prompts are on, prompts are displayed in a tooltip near the cursor. You can enable or disable dynamic prompts by clicking the Show command prompting (Dynamic Prompts) check box on the General tab of the Application Options dialog box. Dynamic prompts are turned off by default.
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