Admin UI and DNS resolution failing when DNS1 ENV variable is not default gateway/router

For some reason, if I have DNS1 set to any IP other than my router (192.168.100.1), the Pi-Hole admin UI is unreachable (via IP) and DNS resolution fails.

Maybe I'm misunderstanding the DNS1 and DNS2 ENV variables? I was under the impression that these should be set to public DNS providers.

Right now, I have DNS1 set to my home router (192.168.100.1). My home router has DNS pointed at my RPi (192.168.100.127). Things are working, but I'm confused why I'm unable to set DNS1 to 1.1.1.1 or 8.8.8.8.

Any idea what's up?