I have it too. Someone can talk to me, and I can hear them, but I can't understand what they are saying. The worst is when they just repeat it louder to me -- I have to sit there and explain to them that they have to say it a different way for me to understand it 'cause my brain isn't processing what they just said.
It can be very frustrating! There's not much they can do about it, although.
I'm also dyslexic. I also have ADD/ADHD and BPD. Fun times. They ADD meds help with paying attention, especially if reading or doing something... but the hearing is it's own thing and sometimes it just doesn't work. I also have a thing were I can't remember how to say simple things from time to time... for example, I'll forget what a "table" is called -- a table, of course, but I'll forget that term. That can be very frustrating, and I've learned to describe objects to people if I forget what they are called.... ie, the long flat wooden thingy with four legs in the kitchen.
I forget what the term for the speaking thing is, but there's a term for it.
My friends are used to me not remembering stuff, as well as not being able to understand what they say sometimes and know they have to rephrase it in hopes my brain gets the block out.