'Dorian mode on C' does not mean "the Dorian scale that you can find among the notes that are available in the major key of C"!
'Dorian mode on C' refers to the Dorian scale, or set of note intervals, that start on the note C, i.e. C is its root or tonic. This set of notes happens to be the same as the ones found in the Bb major key, thus two flats.
This is to say, the specific mode gets its name (C, Db, D, ...) from its first -- or root -- note, not from the key who's notes happen to match the set of notes used in this mode.
Again:
The Dorian mode on C happens to use the same notes as the Bb major key and thus uses the same key signature. However since C is its root note, or tonic, it is a C Dorian.
This is analogical to that the Mixolydian mode on F uses the same notes as are found in the key of Bb but has F as its root, or to that the Ionian mode on Bb, which has Bb as its root, happens to use the same notes as the Bb major key, etc.
(Or for that matter that the Bb major scale happens to use the notes of the Bb major key. But this is slightly different since this scale got its name from the key. :-)
Perhaps these three tables clarifies this for someone:
1) All Dorian modes
Mode Flats/Sharps Corresponding major key signature
C Dorian 2b Bb
C# Dorian 5# B
D Dorian 0 C
Eb Dorian 5b Db
E Dorian 2# D
F Dorian 3b Eb
F# Dorian 4# E
G Dorian 1b F
G# Dorian 6# F#
A Dorian 1# G
Bb Dorian 4b Ab
B Dorian 3# A
2) All modern modes corresponding to the Bb major key
(Note that the number of flats remain the same.)
Mode Flats/Sharps Corresponding major key signature
Bb Ionian 2b Bb
C Dorian 2b Bb
D Phrygian 2b Bb
Eb Lydian 2b Bb
F Mixolydian 2b Bb
G Aeolian 2b Bb
A Locrian 2b Bb
3) All modern modes on C
(Note that the number of flats/sharps varies.)
Mode Flats/Sharps Corresponding major key signature
C Ionian 0 C
C Dorian 2b Bb
C Phrygian 4b Ab
C Lydian 1# G
C Mixolydian 1b F
C Aeolian 3b Eb
C Locrian 5b Db
D E F G A B C
Dorian mode on D. The word "Dorian" tells you where the half and whole-note steps are, the C or D tells you where it starts from. It doesn't mean that it's based on C or D major, just like C minor is not using the same notes as C major.