died / dyed are similar-sounding terms with different meanings (referred to as homophones). To better understand the differences, see below for definitions, pronunciation guides, and example sentences using each term. 👇
died: (verb) pass from physical life and lose all bodily attributes and functions necessary to sustain life. (verb) suffer or face the pain of death. (verb) be brought to or as if to the point of death by an intense emotion such as embarrassment, amusement, or shame. (verb) feel indifferent towards. (verb) languish as with love or desire. (verb) cut or shape with a die. (verb) to be on base at the end of an inning, of a player. (verb) lose sparkle or bouquet. (verb) disappear or come to an end. (verb) suffer spiritual death; be damned (in the religious sense).
dyed: (verb) color with dye.
died: d·AY·d
dyed: d·AY·d
(Examples are Wikipedia snippets under the CC ShareAlike 3.0 license. Definitions drawn from WordNet.)