Place potatoes into a large pot and cover with salted water; bring to a boil. Reduce heat to medium-low and simmer until tender, 15 to 20 minutes; drain.

Combine chicken broth, vinegar, and oil in a large pot; bring to a boil. Add onion to broth mixture; cook until onion is desired tenderness, 2 to 6 minutes. Remove pot from heat and add potatoes, bacon, and dill; gently stir, adding more chicken broth if needed to moisten salad. Season potato salad with salt and pepper.