Avram Grant's men remain bottom of the Premier League following the 2-2 draw with West Brom on Wednesday, but they did at least show some fighting spirit.
They rallied after Peter Odemwingie's penalty to take the lead through a Scott Parker cracker and Frederic Piquionne spot-kick, but Pablo Ibanez secured a share of the spoils for the Baggies.
West Ham - four points from safety - have now not won in the league since September 25 and Dyer accepts the future will look bleak if they fail to beat Blackpool.
"We said Birmingham was a 'must win' game, but against Blackpool we need three points otherwise people will start saying we might be doomed," he said.
"Blackpool are going to come here and have a right go at us.
"We have to be confident and match their desire.
"It is all about playing with no fear.
"I am a confident player and I don't let things affect me, but you can see that some players are affected.
"Again, as soon we went ahead we nearly got the third goal, but then we kind of went into our shells.
"You could sense it was just a matter of time that they were going to score and it can't be like that.
"As soon as we get in front, the attitude is to protect what we have.
"We have got to stop making these mistakes or this is going to cost us dearly."
The Boleyn Ground faithful are becoming increasingly restless at the lack of a killer instinct around the opposition penalty area and it was evident again against West Brom.
Dyer does not blame the fans for their frustration and knows it is the players' responsibility to get them back onside.
"We have to give the crowd something to cheer about," he said
"I always believe that it is up to us to inspire the West Ham crowd - in the first half we gave them absolutely nothing apart from a wonder goal from Scott Parker.
"If we are going to stay in the Premier League, we are going to have to make Upton Park a fortress.
"There is nothing coaches can do about that. You just need big characters out there. You just have to be mentally strong."
Avram Grant has seen his resources stretched to the limit by injuries recently and Dyer's appearance against West Brom - he came in for Valon Behrami, who has a hip problem - was the first time he has completed 90 minutes for the Hammers since joining from Newcastle in a £6million deal during August 2007.
"It was a massive stepping stone. I didn't have much energy for the last 20 minutes - I was running on empty," Dyer said.
"There were no signs of my hamstrings and to get 90 minutes under my belt will help me to get 100 per cent match-fit.
"When I get there, I will help this team massively and the sooner I get there, the better for all concerned."
West Ham are likely to face a very different Blackpool side to the one that faced Aston Villa on Wednesday - Ian Holloway made 10 changes - but Grant will not be complaining.
"They did what they had to do for that [match]," the former Chelsea and Portsmouth manager said.
"Also they have a bigger squad than us, and without injuries, so they could do it."
As for the Hammers' latest failure, Grant remains as upbeat as possible.
"We did everything we could, but unfortunately we didn't do it for the supporters," he said.
"It will be a similar game on Saturday. Blackpool are a good team and we need to want it more than them. The spirit is still good."