Following on from James's answer, the html option of showModalDialog allows you to directly send html to be rendered in the dialog.
Unfortunately it accepts an HTML DOM object rather than an HTML string, so we would have to do the following:
<script language="javascript">
function popUp() {
var frame = document.createElement('iframe');
frame.setAttribute('src', 'http://tsstsst.com');
frame.setAttribute('width', '99%');
frame.setAttribute('height', '98%');
var options = {
title: 'TssTssT',
width: 950,
height: 600,
html: frame
};
SP.UI.ModalDialog.showModalDialog(options);
}
</script>
<button OnClick="popUp();return false;">View Stu's blog!</button>
No application page required.