Depth-division multiplexing (DDM) is a common method for full-color hologram generation. However, this method will result in uneven image-quality levels at different color channels of the original color image. In this paper, the DDM method with dynamic compensation is proposed for a full-color holographic display. Three monochromatic images of red (R), green (G), and blue (B) channels from the original color image are placed orderly at different positions (object planes) of the same optical axis; then, the complex amplitudes of the three object planes are iteratively updated in a designed order when a laser wavefront propagates between object planes and the hologram plane. In the iterative process, a dynamic compensation factor is added to the complex amplitude of each object plane, which can effectively balance the quality level of the reconstructed image in each color channel. As a result, the image quality of a full-color object is improved. Numerical simulation and optical experiments are carried out to verify the method's feasibility.