Ok, since we're getting technical....capacitance is a measure of a system's ability to store charge.
And a dielectric is material that relates the permittivity of a material to that of free space, often termed Eo or epsilon zero.
A capacitor is formed by separating two conductive surfaces with a dielectric. C = ErEo * A/D where Er is the relative permittivity (also the dielectric constant for a material), Eo is what I said before and A is the area of the surface(s) and D is the distance separating them.
In an electric circuit, the impedance of a capacitor, is given by 1/(jwC)...where w is the frequency of a sinusoidal voltage in radians/sec and C is the capacitance of course. Since a DC current is has a frequency of zero, then 1/(jwC) results in a value approaching infinity, i.e. it's an open circuit to DC current. Now of course this applies to sinusoidal steady state conditions. If we wish to discuss the differential equation that need solving to understand exactly what happens in a circuit containing a capacitor, let me know.
In the case of a spark plug boot containing a dielectric grease, if there is any separation between the two metals, that of the plug and that of the plug wire's end, then a capacitor is formed with the grease being the dielectric. Of course, if there is no separation, i.e. the grease is squeezed out...then of course the grease need not conduct.