Trying to understand Pi hole DHCP

Help
1

This is probably really easy, so apologies for my lack of understanding but I can't get my head around it. It's not a problem as system works fine but I'm more curious to know.

Successfully installed PI-Hole to a raspberry Pi on my network. I can't change my DNS at router level, so I turned off DHCP there and turned on Pi-hole DHCP. Everything works just fine.

What I don't understand is that if the router's DHPC is off, how is the IP being given to the PI-hole? It has the address it was initially allocated by my router. I also have a Synology NAS and its IP hasn't changed after installation either. Most of the things in the network list do appear to have been given an IP from the Pi-hole DHCP server.

2 
pi@noads:~ $ tail /etc/dhcpcd.conf
interface eth0
    static ip_address=10.0.0.2/24
    static routers=10.0.0.1
    static domain_name_servers=127.0.0.1
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