This research delves into the dynamic evolution of bipartite entanglement and nonclassical correlations within a two-spin system governed by dipole-dipole interactions and Dzyaloshinsky-Moriya (DM) coupling, while affected by intrinsic decoherence (ID). Beginning with the initialization of the bipartite system in a Werner state, we investigate how ID, dipolar coupling parameters, DM interaction strength, and uniform magnetic field strengths influence the progression of quantum entanglement and nonclassical correlations. Logarithmic negativity serves as a metric for quantifying entanglement, while quantum discord is employed to probe nonclassical correlations beyond entanglement. Our results highlight that strategic adjustments to the system parameters can alleviate the undesirable impact of ID. Moreover, the choice of initial state and its degree of pureness significantly influences the levels of entanglement and quantum discord within the dipolar-coupled spins system.