Sprinkle the yeast over 1/2 cup of warm water in a small bowl. The water should be no more than 100 degrees F (40 degrees C). Let stand for 5 minutes until the yeast softens and begins to form a creamy foam.
Heat a large skillet over medium heat and add the olive oil and the onions. Cook and stir for 3 minutes, or until onions are soft. Remove the onions from heat and reserve.
Combine the bread flour, salt, sugar, dill, garlic powder, olives, and cooked onions in a large bowl and mix well. Add the yeast mixture and the remaining 1 3/4 cup water. Mix well until the ingredients have pulled together and have formed a sticky dough. Turn the dough out onto a lightly floured surface and knead until smooth and elastic, about 8 minutes.
Lightly oil a large bowl, then place the dough in the bowl and turn to coat with oil. Cover with a light cloth and let rise in a warm place (80 to 95 degrees F (27 to 35 degrees C)) until doubled in volume, about 1 hour.
Lightly grease two baking sheets. Deflate the risen dough and turn it out onto a lightly floured surface. Use a knife to divide the dough into two equal pieces-don't tear it. Shape into dough into round loaves, and place the loaves into the prepared pans. Cover the loaves with a damp cloth and let rise until doubled in volume, about 40 minutes.
Preheat an oven to 450 degrees F (230 degrees C).
Bake loaves in the preheated oven until the tops are golden brown and the bottoms sound hollow when tapped, about 40 minutes. Cool slightly before slicing.