Interactions among emitters provide a powerful means of controlling collective light--matter phenomena, yet their role in superradiant criticality has not been thoroughly investigated. Here we construct a minimal model that can yield analytical insights --- a Dicke model with two interacting atoms coupled to a single mode cavity --- to study such interaction effects. We show that interaction changes the phase boundary, and may even completely suppress the atom-photon coupling threshold for superradiance and change the universality class of the phase transition. We further study the dissipative phase transition and quantum dynamics in the presence of dissipation channels such as photon loss and spin relaxation. Our results demonstrate important roles played by the atom-atom interaction and how it can be engineered to control atom-photon coupling.