DIM variables are core ACAD variables that control how dimensions are created & displayed. When you use DDIM to setup dimension styles, you are manipulating these variables and saving them to a style for easy retrieval. (I'm an old keyboard-entry guy, so I'm referring to commands you can type from the keyboard - DIM, DDIM, WD_BALLOON are all commands you may well be invoking from pulldown or button menus.)
WD_BALLOON is the program that runs when you select the "Insert Balloon" button/function/command, whatever you call it. This is (probably) a LISP-coded routine that works in combination with the LEADER (or perhaps the older DIM LEADER?) command, and it allows you to set arrowhead size & appearance and text size. To accomplish this, it manipulates DIMASZ for arrow size and DIMTXT for text size. It saves your current settings for these variables when you start it, and restores them when you are done drawing a balloon (unless you cancel it instead of drawing a balloon!).