Step 1: Differentiate once
$y' = -\dfrac{b^2x}{a^2y}$.
Step 2: Differentiate again
Apply the quotient rule and replace $y'$ to get a numerator $b^2x^2 + a^2y^2$ over $a^2y^3$, times $-\dfrac{b^2}{a^2}$.
Step 3: Simplify
The numerator equals $a^2b^2$, giving $-\dfrac{b^4}{a^2y^3}$, which matches option D.
Final Answer:
The second derivative is -b^4/(a^2 y^3).
\[ \boxed{\text{(D) }\dfrac{-b^{4}}{a^{2}\cdot y^{3}}} \]