Yes. There are more than one way to use Pi-hole.
When you configure Pi-hole IP on the LAN/DHCP side:
- the router advertises Pi-hole IP as DNS server;
- every device on your network will directly use Pi-hole as DNS server
Setting Pi-hole on the WAN side also works, but with a small difference:
- every device on your network will use the router IP as DNS server
- only the router will use Pi-hole as upstream DNS server
Pi-hole will block ads in both cases.
These topics can help you understand the differences: