Just as JR said above, average equilibrium most places is in the 12-15% range, so most stoves are made to burn wood in the 15-20% range (because many people try to burn wood that is not to perfect equilibrium, plus it varies by season, and by location too)
Whatever the moisture level is in the wood, it is directly deducted from the BTU's that otherwise would be available burning that wood (15% MC, 15% gets deducted from the BTUs available in a given pound of Oak (for example)
Water does not burn, water makes steam in the firebox, which quenches the fire, and water is a big part of making creosote too.
The whole "too dry" thing is largely propagated by the OWB guys that throw anything/everything in and it "burns" (sorta...smolders is more like it) because they are designed to "burn" wet wood, to satisfy the demands of a certain group of people that are too lazy to gather/split wood and let it dry (which would be much more clean burning, and efficient!) but its a false economy because OWB (just for example) that are made to burn dry wood, are MUCH more efficient...wood consumption often drops by 50% by switching over!