She appeared in many musicals under her birth name, Dolores Goodman, including Something for the Boys, One Touch of Venus, Miss Liberty, and Call Me Madam. Her first billing as Dody came in the original production of Wonderful Town.
Her other notable Broadway credits include the 1969 revival of The Front Page, the 1974 musical Lorelei, and the 1994 revival of Grease, in which she took over the part of Miss Lynch. In 1991, she appeared Off-Broadway in the play Selling Off.
Goodman appeared in the film version of Grease and Grease 2 as Blance Hodel. Her television credits included Search for Tomorrow, The Jack Paar Tonight Show, for which she received an Emmy Award nomination, Mary Hartman, Mary Hartman, and Diff'rent Strokes. In 2007, she received a Lifetime Achievement Award for the Manhattan Association of Cabarets and Clubs.
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