Aunt Dashwood is the sister of Henry Dashwood senior’s Uncle Dashwood, making her the great-aunt of John, Elinor, Marianne and Margaret Dashwood.
We are told she spends the last ten years of her widowed brother’s life serving as his companion as housekeeper, implying that she never married. This likely means she was acquainted with the Dashwood children. Since her death is never spoken of, she may or may not still be living when the novel begins.