You are correct in your analysis. You can refer to it as direct or indirect "quotes" or "quotations" as well. "Dialogue" refers to a conversation between two or more.
Term for Indirect Dialogue?
There are two different types of dialogue I'm aware of, that for the moment I'll refer to as 'direct' dialogue and 'indirect' dialogue. However, I know these terms aren't the correct ones, and it's been driving me crazy not being able to remember.An example would probably be best.'Direct' dialogue: "I don't want to do that," he said.'Indirect' dialogue: He said that he didn't want to do that.One form uses quotes to show explicitly what was said by the person; the other merely states that the person said something, without giving their words exactly. What are the proper terms for these two methods of displaying dialogue?Thanks!
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2 Answers By Expert Tutors

Derica W. answered 04/24/19
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You’re close. This is actually called direct and indirect speech rather than direct or indirect dialogue. A dialogue is specifically between two persons.
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