What should be the approach of implementing a Touch UI Dialog with a list of checkboxes, and the list comes from the server-side.

Normally to build a Touch UI dialog - you need to build a JCR node structure using node with resource types such as: granite/ui/components/foundation/section.

See this article to learn how to build a Touch UI dialog using JCR nodes: 

https://helpx.adobe.com/experience-manager/using/creating-touchui-component.html

Now - to dynamically build checkboxes in a Touch UI dialog - you need to write script that invokes a service operation that returns a list. Then read that list and code using Granite APIs. 

The only article that I know of that shows how to code with Granite APIs is the MultiTouch article. 

In this artilce - you can see a file named nested-multifield.js file that codes using Granite APIs. 

We will be putting more of these Granite API examples together. I am looking to see if I can find one that uses Checkboxes.