DNN Localization handles the localization of static content (Field labels, help, error messages, etc). DNN Localization does not handle localization of dynamic content. In this context, I would classify dynamic content as any information that a user adds to the system that is not a default part of the core or module. This includes any content you add such as Text, links, forum posts, documents, etc. If you think about it, how could DNN handle it. Each modules data is so specific, it would have no way to know how to handle each module's specific content.
As far as I know, to localize your 'dynamic' content, it is up to you to implement. I would key off the core for the list of available languages and to see what language is selected, and show the data from the db accordingly, but you will need to store the data for each language in the database yourself.
The ability to localize the dynamic content of a module is something I wish all module developers added to their modules.