Dither is a Germin term, the exact definition of which I've no clue.
But in referance to Dither fish, these are fish placed in a tank to bring out shy larger fish. It is best explained in an example.
Frequently, young oscars are actually shy fish that if kept alone in a tank will hide in corners or behind decor. Of course nobody wants a fish that they can't ever see. If we could read the oscar's mind, its thoughts might go something like this:
"Oh my, I'm all alone, oh no, big predator gonna find me. I don't see any other fish around, that means predator and I ain't gonna be dinner."
So you throw in a few Buneos Aries tetras, giant danio, or congo tetras, maybe a medium sized tinfoil barb, or bala shark, fish that are swift enough to get away from an oscar should he get hungry, but not so large as to be intimidating to the oscar. These are your dither fish. They are in essence a prey species and security blanket. If prey species feel secure enough to go darting around the open, the young oscar may feel more secure and also come out of hiding.
I've seen the concept work, and have used it a few times myself, especially with SA cichlids that may be the only ones in their tank. They're usually shy, won't feed when someone is standing in front of them, and hide frequently. Throw in a trio of Buneos Aires tetras, and the oscar gets braver and will eat better when he sees the BA's feeding.
~~Colesea