The issue I am facing:
What is this 127.0.0.1 ip address in my Pi hole active clients? 10.0.0.1 is my UniFi DreamMachine router
Details about my system:
Raspberry Pi running Homebridge with Pi-Hole along side, UniFi Dream Machine router using pi hole as dns server
Thanks 
It's a local address (internal loopback address of Pi-hole machine).
What Is the 127.0.0.1 IP Address?.
If you set up upbound as a recursive DNS server, you'd use the address as the upstream DNS at port 5335.
Thank you. So all is ok? Everything on my network is being ad blocked, so its working ok
Yes. As you can see, I have the same entry:
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