The code is simple, it just adds two config entries to a dnsmasq config. The rest is handled by dnsmasq:
Dnsmasq server documentation:
--server=[/[]/[domain/]][[#][@|[#]]
Specify IP address of upstream servers directly. Setting this flag does not suppress reading of /etc/resolv.conf, use -R to do that. If one or more optional domains are given, that server is used only for those domains and they are queried only using the specified server. This is intended for private nameservers: if you have a nameserver on your network which deals with names of the form xxx.internal.thekelleys.org.uk at 192.168.1.1 then giving the flag -S /internal.thekelleys.org.uk/192.168.1.1 will send all queries for internal machines to that nameserver, everything else will go to the servers in /etc/resolv.conf. DNSSEC validation is turned off for such private nameservers, UNLESS a --trust-anchor is specified for the domain in question. An empty domain specification, // has the special meaning of "unqualified names only" ie names without any dots in them. A non-standard port may be specified as part of the IP address using a # character. More than one -S flag is allowed, with repeated domain or ipaddr parts as required.
www.thekelleys.org.uk/dnsmasq/docs/dnsmasq-man.html