B4X only has two scopes for variables, global and local. It doesn't matter where in the Sub a variable is Dimmed, its actual declaration will be hoisted to the start of the Sub and it will be visible anywhere in the Sub.
For primitive types if doesn't really matter if you Dim them within the loop or outside, although each Dim will reset the variable to its default value, such as 0 for an Int or an empty string for a String unless you also do an assignment to that variable.
However for reference types there is a(n often not-so) subtle difference depending on the position of any Dim statement that can trip you up. Whenever you Dim a reference type the variable is assigned a new instance of that type so if you Dim it once outside the loop and use it inside the loop every pass round the loop will manipulate the same object. If you Dim it inside the loop a new instance is created for each pass round the loop. This is important if you want to save such instances each time round the loop when you must Dim inside the loop otherwise you will end up with only a single instance of that type, though perhaps saved in multiple places, that reflects the values given it in the last pass round the loop. Hint - if it needs Initialize called on it it is a reference type.