The advancements of Large Language Models (LLMs) have spurred a growing interest in their application to Named Entity Recognition (NER) methods. However, existing datasets are primarily designed for traditional machine learning methods and are inadequate for LLM-based methods, in terms of corpus selection and overall dataset design logic. Moreover, the prevalent fixed and relatively coarse-grained entity categorization in existing datasets fails to adequately assess the superior generalization and contextual understanding capabilities of LLM-based methods, thereby hindering a comprehensive demonstration of their broad application prospects. To address these limitations, we propose DynamicNER, the first NER dataset designed for LLM-based methods with dynamic categorization, introducing various entity types and entity type lists for the same entity in different context, leveraging the generalization of LLM-based NER better. The dataset is also multilingual and multi-granular, covering 8 languages and 155 entity types, with corpora spanning a diverse range of domains. Furthermore, we introduce CascadeNER, a novel NER method based on a two-stage strategy and lightweight LLMs, achieving higher accuracy on fine-grained tasks while requiring fewer computational resources. Experiments show that DynamicNER serves as a robust and effective benchmark for LLM-based NER methods. Furthermore, we also conduct analysis for traditional methods and LLM-based methods on our dataset. Our code and dataset are openly available at https://github.com/Astarojth/DynamicNER.