The Swansea winger's right ankle folded when Norwich defender Sebastien Bassong landed on top of him after an aerial contest, and the 26-year-old heard a snap.
As he received oxygen and was taken to hospital, Dyer was sure his ankle was broken and that he would not play again during the current campaign.
However, x-rays revealed it was a ligament, rather than bone, the wide man had heard snap as he fell, and he completed his recovery by appearing as a substitute in Tuesday's 2-0 win over Fulham, Swansea's first in nine Premier League games.
"I am very pleased to be back," said the 26-year-old. "Thankfully the ankle was not injured as seriously as we first thought and I have managed to get back to fitness.
"It is still not 100 per cent but it was good to be back with the boys and help them get the win.
"I heard a snap when I did it, but the specialist said I was fortunate as it was just the ligament that had snapped away. That no longer exists now but luckily it wasn't the bone.
"When I was down on the pitch I seriously thought it was very bad. I couldn't get up, but luckily my ligaments were strong enough to protect the bone. Obviously it snapped but it could have been worse."
Dyer had been in good form prior to his injury, and he picked up where he left off against the Cottagers as he teed up Jonjo Shelvey for Swansea's first, and won the free-kick from which Chico Flores headed in the second.
The win moved the Welsh club into the top half of the table and gave them some valuable breathing space over the bottom three, and Dyer admitted it had been difficult to watch Swansea's recent struggles from the sidelines.
"I've been in every day, over Christmas as well, trying to get back," he said. "I'm not one who likes to be watching games so I have been trying to get back as quick as possible.
"It was frustrating to see the team having a difficult run of results. A lot of teams have talked about having injuries and we have been hit by a lot of injuries, but we are coming back to fitness and we are looking forward.
"It means people are challenging for positions and everyone has to work hard to keep their place, the depth means there are more options available to help us win games.
"What we do here is take one game at a time. We have won two in a row now including the FA Cup win last weekend and we need to make sure we take that into Saturday's game at West Ham and keep moving forward."
But Dyer is prepared to wait for a 90-minute outing as he works towards full fitness.
"I have no idea if I could start on Saturday, it will take a little bit of time to get match fit," he said.
"I have done a lot of running in training but that's different to being on the field during a game when you are having to change direction a lot, so you have to get up to speed with that before anything else.
"I had five goals before the injury and I was hoping to have a good run but hopefully I can pick that back up now I am fit again and help the team."