A controller for function switching and dynamic identification switching and a dynamic identification method are disclosed. The controller includes a switch circuit, a master circuit and a switching circuit, wherein the switch circuit is electrically connected to the master circuit, and the switching circuit is electrically connected to the master circuit. The switching circuit includes a function realization component and a light controlled component, the function realization component is electrically connected to the master circuit for function realization, and the light controlled component is electrically connected to the master circuit for light conversion. When the function is switched, the corresponding dynamic identification is synchronously completed. It not only completes reliable function switching, but also timely and accurately identifies the dynamic change of functions, which is convenient for users.