Dry coconut is the flesh of the coconut that has been removed from the coconut shell, dried, and typically grated or shredded into small pieces. It is essentially the meat of the coconut that has had most of its moisture removed, resulting in a dry, flaky texture.It is essentially the meat of the coconut that has had most of its moisture removed, resulting in a dry, flaky texture. Coconut has so many benefits that we can use it for.