There are multiple ways through which you can modify the background or change the wallpaper on Xbox One console. For example, you can You can even set a custom image as your wallpaper on the Xbox ...

It looks like Microsoft is currently developing a custom Xbox Dynamic backgrounds editor tool, but there’s a chance it could just be for game developers and not players to use.

Based on the shared GIF of the app, it looks as though the Xbox Dynamic Backgrounds Editor might work a bit like Wallpaper Engine — an app that lets you create live wallpapers on Windows.