Dame is the same thing as a Knight is for a man, except when a woman is knighted in the United Kingdom, she is addressed as Dame whatever, just as a knight would be addressed as Sir Alexander, or Sir George, etc. Knighthoods are usually only given for very high acheivement, but probably sometimes for very high birth.
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She was appointed Dame Commander of the British Empire in 1918 for her charity work during World War I and was later elevated to Dame Grand Cross of the British Empire in 1927.
yes
Vera Lynn was honored as an Officer of the Most Excellent Order of the British Empire in 1969. In 1975 she was promoted to Dame Commander of the Most Excellent Order of the British Empire.
1918
Yes.