Emboss dynamic text on surface of 3d model?

Unity's 3D Text/TestMesh is 2D text that lives on some sort of quad in 3D space. So the only way to emboss this kind of text would be to fake it like Photoshop fakes embossing. You could use a custom font material that has the image shading to make the text appear embossed. For true raised text, you would need extruded meshes for characters that you manipulate in Unity.

As for the bending, here is a blog article that explores the topic.

http://blog.almostlogical.com/2010/08/20/adding-text-to-texture-at-runtime-in-unity3d-without-using-render-texture/

This is an older article, so I don't know if the provided Unity package will work with the latest version. And there may be better ways to do what he does in the latest version of Unity.