Dream recall is exactly what it says. It is the ability to recall your dreams. You can have a good recall or a bad recall. Example I told my friend I had a weird dream about his house, he said in response "I don't normally dream" This is an incorrect statement, we dream every night, its just if they are clear and we remember them.
how to improve it Edit
Dream journals can help improve your dream recall, try writing in it just after you wake up each morning. I personally tell myself i will remember my dreams before sleeping, like a MILD. You can also remember a dream by waking up just after a period of REM, your brain starts to erase the previous dream after it happens for the next dream, we have on every period of REM which is why we remember about four different scenes when we wake up.
On the other hand, you can lessen your dream recall by being stressed, staying calm gives you a better one.
more info Edit