The other important thing to note before we dig in, is that dialogue should always have a point. Yes, functionally, it breaks up chunky prose. But if your characters have a conversation that doesn’t lead anywhere, doesn’t uncover new information, reveal something or decide a plan of action, it’s pretty pointless. It will come across that way to the reader too. Make sure each line spoken is a knight in shining dialogue that’s earned its right to be there.
