Team Dillon Racing was created as a driver and crew development program for Richard Childress Racing using multiple car and track types, including Legends, UMP Modified, Late Model, and NASCAR Grand National Series, (East and West) on dirt and asphalt.

Drivers experience different circumstances that expand their learning curve in handling, throttle, and car control. These experiences help train drivers to have better instincts and reactions at upper levels of this sport. Kevin Harvick and Clint Bowyer are both current examples of drivers who have benefited from this type of experience.

After Mike Dillon attended his first dirt Late Model race, at Volusia County Speedway in Florida, he believed he had found the next challenge for his teenage boys, Austin and Ty. Austin and Ty had been racing Bandelero and Legends cars for a couple seasons, and Mike felt that the dirt experience would help them expand in different types of racing to give them a better balanced education in their driving development.

Shortly thereafter, Mike contacted Dale and Shane McDowell, who owned and operated a dirt driving school at North Georgia Speedway. Mike enrolled Austin in the McDowell's school and he adapted so quickly that the Dillons purchased their own Late Model car. The McDowells began to mentor Austin in his initial endeavors in dirt Late Model racing. Their efforts pleased Mike, his wife Tina, and his father-in-law Richard Childress and prompted them to invite the McDowells to join Team Dillon Racing, where Shane continues today as Team Manager and Shop Foreman.

Mike Dillon, owner of Team Dillon Racing, is Director of Competition at RCR Racing and a former NASCAR (Cup, Busch, and Truck) Driver himself who has a unique understanding of what a young driver needs to succeed and what a racing business must have in terms of personnel and equipment to excel. Under Dillon's direction, RCR won the Nascar Busch Championship in 2006,two of its Nascar Nextel Cup Teams were contenders in 2006 Chase for the Cup and three teams were contenders in the 2007 Chase for the Cup.

Team Dillon Racing is a Richard Childress Racing development program. Austin and Ty Dillon, the first drivers to participate in the new driver development program, are the grandsons of Richard Childress. After the interest in other types of racing began to grow, Richard, along with Mike and Tina Dillon, discussed the next step that needed to be taken in order to advance the careers of Austin, Ty, and other aspiring drivers and crew members. Richard thought that it would help for RCR to have a development program for drivers and crewmembers so that a pool of talent could be cultivated nearby. TDR is bases out of RCR's original NASCAR Busch Series shop, and not only houses dirt cars, but asphalt as well.