Above is the correct way if can make it work this way.
You have to make it so that the router advertises the Pi-hole IP as the only dns-server when run below one:
pi@ph5b:~ $ pihole-FTL dhcp-discover
Scanning all your interfaces for DHCP servers
[..]
dns-server: 10.0.0.2
[..]
If you cant make it work this way, you could opt to enable Pi-hole's own DHCPv4 service and disable the one on your router: