I read this novel in the mid or late 1990s, I think.

The protagonist is a young person (girl?) who lives in a dome/arc city. Everyone there is telepathic. There is a high degree of conformity expected, everyone is assigned a specialized job, dresses in uniforms, etc. (It really contains basically every dystopian arc trope you can think of...)

At one point she is put into a sort of 'solitary confinement'/sensory deprivation chamber where she is telepathically cut off from the rest of the people. Most citizens consider this a horrible punishment, but she finds it relaxing.

Because she is uniquely able to survive apart from the group(?) she is the first person to leave the city and see what the post-some-kind-of-disaster earth is like.

I remember the name being related to dreamcatchers, but it is definitely not related to The Dreamcatcher by Steven King, or Under The Dome.

Based off this Goodreads thread, I think you are looking for The Dream Catcher by Monica Hughes. The description from the Goodreads thread is:

I read this mid-90's although I have no idea when it was published. It could be YA. It was the first in a series I think.

The main girl lives in a domed city/utopia and realizes she has telepathic/telekinetic powers. She needs to escape before the authorities discover her but is afraid to leave because she's not even sure if the air is breathable outside the glass dome. Finally she takes her chances. I remember a part where she was amazed by the feel of the wind/sun on her skin.

She meets a guy somewhere along the line too. But for some reason they decide to go back. She's captured and locked in a "dark" room where she actually finds relief from all the telepathic muttering that has been battering against her mind.

I think the leader turns out to be related to her? brother/father/something?

I don't remember how it ends... or perhaps that was the ending...

Scatterlings (1991) by Isobelle Carmody.

Merlin awakes from a terrifying accident not knowing who, or where she is. All she knows for certain, is that this is not her world ... Bewildered and alone, Merlin sets out through an alien landscape to try and discover the truth about herself - as terrifying as it may be!

This excellent answer to a related question on here makes reference to domes and everyone being telepathic. Book quotes taken from the linked answer.

Again his lips did not move and Merlin realised, amazed, that he was reproaching her telepathically.

”You were unhooked from the computer and taken by flier to a smaller dome where you were to be ‘found’ by Andrew and Sacha...you were never meant to see that there was life going outside the dome. You would live among us, and bond with us.”

“Your clanpeople are the descendants many times removed of those people who were refused admission to the domes, and who somehow adapted to the poisons, the increased strength of the sun, and the heat. We are not descendants – we are members of the survivors who lived in the domes.”

I found this with the Google search ‘novel telepathic people under "dome"’ which returned the linked answer.