Things that are dazzling seem stunning and extraordinary — they impress you enormously. A dazzling circus act amazes you with its daring and skill.
There are two ways for something to be dazzling: first, to overwhelm you with its beauty or ability. The second way is more literal — something that's blazing with light, like a summer sunrise or headlights shining into your car as you drive at night, is also dazzling. The summer sunlight on the ocean might be dazzling in both senses of the word, blinding you a little and also impressing you.