We study large-eddy simulation (LES) of compressible decaying isotropic turbulence of dense gas at initial turbulent Mach numbers of 0.4 and 0.8. The unclosed subgrid scale (SGS) terms are approximated by the dynamic iterative approximate deconvolution (DIAD) model proposed by Yuan \emph{et al.} "Dynamic iterative approximate deconvolution models for large-eddy simulation of turbulence," Phys. Fluids 33, 085125 (2021), and compared with the dynamic Smagorinsky (DSM) model.In an \textit{a priori} test, the correlation coefficients of DIAD model for most SGS terms are larger than 0.98, and the relative errors are smaller than 0.2, except for the SGS internal energy flux. In an \textit{a posteriori} test, the DIAD model can well predict the probability density functions (PDFs) of SGS terms involving thermodynamic variables. Moreover, the DIAD model shows greater advantages than the DSM model in predicting various statistics and structures of compressible turbulence of dense gas, including spectra of velocity and thermodynamic variables, PDFs of SGS kinetic energy flux, deviatoric SGS stress and normalized strain-rate tensor, and the instantaneous spatial structures of vorticity.