Just thought about your entry. Actually i’m not using the synology dns server, i’m using synodnsmasq already a long long time, long before synology had it’s dns-server. dnsmasq is smaller than a normal dns server, there are no zones and so on.
Well, my diskstation has own dns server entry for LAN and synodnsmasq is using this as upstream dns. normal you can use the isp router as dns or use another dns in internet.
i’m using the synodnsmasq also as dhcp server, so i don’t use the router’s dhcp and dns. So i could easily configure another dns-server. But you could configure by hand manually.