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Dry embossing just means that the paper is pushed through some kind of stencil or mold (usually a brass stencil or something like the Cuttlebug embossing folders or Fiskars texture plates) to produce the raised areas . The term is probably just being used to distinguish from "heat embossing" (using ink and powder that is then melted with a heat gun). HTH!
You can dry emboss by hand using a stencil, stylus, and a light table. A secret is to rub the surface with wax paper to make the stylus move along more smoothly.