Binary encoding and its interpretation in Python
Your categorical variable has two levels, so there is no actual difference between dummy-coding vs. simply entering the variable into the analysis. That is, to dummy code you would create one new variable with two values but your original variable is already one variable with two values. Dummy-coding is important for variables with more than two possible values. So, in this case the computer won't consider Pave &gt; Grvl.

But if you have more than two variables then you should use dummy variables.

For your data, you can use pandas.get_dummies() or sklearn's one hot encoder to achieve your result.