What does it mean when something is a dive?

[ C ] informal. a restaurant, hotel, bar, or place for entertainment or social activities that is unpleasant because of the condition of the building or the type of people that go there: The place is a real dive, but the drinks are cheap and the food's great.

Is dived correct?

Some people will tell you that—that the correct past tense of dive is dived. But a survey of the evidence for dive shows that dove is actually twice as common as dived is nowadays in American English, whereas dived is more common in British English.