Yes, it’s real.
And yes, it’s in Canada.
Dildo Island is an island in the Canadian province of Newfoundland and Labrador.
It is the largest of three islands located at the entrance to Dildo Tip in the bottom of Trinity Bay, off the coast of the neighboring town of Dildo.
Dildo is home to about 1,500 people.
There’s no place like Dildo
https://www.newfoundlandlabrador.com/trip-ideas/travel-stories/theres-no-place-like-dildo
Dildo boat tours