Han [] have recently introduced a classical stochastic lattice gas model which, in addition to particle conservation, also conserves the particles' dipole moment. Because of its intrinsic nonlinearity this model exhibits unusual macroscopic scaling behaviors, different from those of lattice gases that conserve only the number of particles. Here we investigate some basic relaxation and fluctuation properties of this model at large scales and at long times. These properties crucially depend on whether the total number of particles is infinite or finite. We find similarity solutions, describing relaxation of the dipole-conserving gas (DCG) in several standard settings. A major part of our effort is an extension to this model of the macroscopic fluctuation theory (MFT), previously developed for lattice gases where only the number of particles is conserved. We apply the MFT to the calculation of the variance of nonequilibrium fluctuations of the excess number of particles on the positive semi-axis when starting from an (either deterministic, or random) constant density at t=0. Using the MFT, we also identify the equilibrium Boltzmann-Gibbs distribution for the DCG. Finally, based on these results, we determine the probability distribution of, and the most probable density history leading to, a large deviation in the form of a macroscopic void of a given size in an initially uniform DCG at equilibrium. Published by the American Physical Society 2024