You get the most accurate dyno readings in a higher gear, preferably one with a 1:1 trans ratio to eliminate additional parasitic loss.
Also, most of the dynos everyone uses just measure horsepower. The wheel is a given diameter and weight, you're only measuring a change in speed. A measured acceleration for a known mass is translated into horsepower. The torque is back calculated. That's why a dyno without an RPM pickup for your engine cannot provide a torque number, but the horsepower measured is accurate.