Dynamite is an explosive added by IndustrialCraft 2. Since Industrial TNT is one of its crafting components, its feature of dropping all of the destroyed blocks still applies. However its blast radius is relatively small, being able to blow up up to 27 blocks forming a 3x3x3 cube.
There are two ways of using a dynamite stick. You can throw it by right clicking when pointing at the air. The fuse will last for 5 seconds until the explosion. You can also place it on the ground or on the sides of the blocks by right clicking on them with the dynamite stick. Then in order for it to ignite, just left click on it. After 2 seconds the dynamite will explode. You can also use Dynamite-O-Mote to detonate the dynamite remotely.
When a dynamite stick is placed, it cannot be removed. Trying to remove a block the dynamite is placed on will result in an explosion after 0.25 seconds.
When caught in an explosion, a dynamite stick explodes after 0.25 seconds as well.