Wash a fermentation vessel thoroughly with soap and hot running water. Set aside to dry completely.
Coarsely dice the green hot peppers and yellow onion.
Slice the garlic cloves.
Add the diced peppers, diced onion, and sliced garlic to the prepared fermentation vessel.
Add the mustard seed and dried dill to the vessel.
In a separate container, combine the room-temperature water and sea salt.
Stir until the salt is completely dissolved.
Pour the salt brine into the fermentation vessel until the peppers, onion, and garlic are just covered.
If additional brine is required, prepare another batch using the same ratio of 2 cups water to 1 tablespoon sea salt, then add enough to cover the ingredients.
Place a fermentation weight or another clean, food-safe weight over the ingredients to keep them fully submerged beneath the brine.
Secure the lid tightly.
Place the fermentation vessel in a location away from direct sunlight where it can be observed daily.
If using a standard lid, open the jar once daily to release built-up gas. If using an airlock lid or pickle pipe, this step is not necessary.
Allow the mixture to ferment for 7 to 14 days, or until the desired level of fermentation is reached. A 10-day fermentation provides a balanced tangy flavor.
During fermentation, normal signs may include small bubbles, cloudy brine, a slight hiss when opened, duller pepper color, and occasional brine overflow.
Once fermentation is complete, strain the contents of the fermentation vessel and reserve the brine.
Transfer the fermented vegetables to a high-powered blender or food processor.
Add 5 large dill pickles, 1/2 cup reserved fermentation brine, 1/4 cup white vinegar, and 1 to 1 1/2 cups dill pickle brine.
Blend until smooth.
If a stronger dill pickle flavor is desired, add additional dill pickles or pickle brine.
If a saltier flavor is desired, add more reserved fermentation brine.
If a sharper flavor is desired, add additional white vinegar.
If the sauce is too thick, add water in small amounts until the desired consistency is reached.
If using xanthan gum, add 1/2 teaspoon to the blended hot sauce and blend until fully incorporated.
For an ultra-smooth texture, strain the hot sauce through a fine mesh sieve, pressing it through with a spoon or spatula.
Transfer the finished Dill Pickle Hot Sauce to clean jars or bottles.
Store the sauce in the refrigerator.