Place potatoes to a boil and add a tablespoon of salt to it. Boil them till they are fork tender. Drain and set aside.
Cook the bacon till the fat starts to render, and then add the onions. Cook the onions and bacon for 5 more minutes and then remove the onions and bacon in a large bowl. Reserve the remaining bacon fat and pour it into a small jar to make the dressing.
Add the olive oil, vinegar, sugar, mustard, dill and half teaspoon salt to the jar with bacon fat and shake well to make the dressing.
Add the potatoes to the large bowl with bacon and onions and pour the dressing on top. Toss well to combine. Serve warm or cold.