Current theory states that most galaxies, including dwarf galaxies, form in association with dark matter, or from gas that contains metals. However, NASA's Galaxy Evolution Explorer space probe identified new dwarf galaxies forming out of gases with low metallicity. These galaxies were located in the Leo Ring, a cloud of hydrogen and helium around two massive galaxies in the constellation Leo.
There are many dwarf galaxies in the Local Group; these small galaxies frequently orbit larger galaxies, such as the Milky Way, the Andromeda Galaxy and the Triangulum Galaxy. A 2007 paper has suggested that many dwarf galaxies were created by galactic tides during the early evolutions of the Milky Way and Andromeda. Tidal dwarf galaxies are produced when galaxies collide and their gravitational masses interact. Streams of galactic material are pulled away from the parent galaxies and the halos of dark matter that surround them.
More than 20 known dwarf galaxies orbit the Milky Way, and recent observations have also led astronomers to believe the largest globular cluster in the Milky Way, Omega Centauri, is in fact the core of a dwarf galaxy with a black hole at its centre, which was at some time absorbed by the Milky Way.
In astronomy, a blue compact dwarf galaxy (BCD galaxy) is a small galaxy which contains large clusters of young, hot, massive stars. These stars, the brightest of which are blue, cause the galaxy itself to appear blue in colour. Most BCD galaxies are also classified as dwarf irregular galaxies or as dwarf lenticular galaxies. Because they are composed of star clusters, BCD galaxies lack a uniform shape. They consume gas intensely, which causes their stars to become very violent when forming.