I’m speculating, but it wouldn’t change a thing. You would still need to request domain addresses from a server somewhere, but traffic between your device and server would be encrypted in transit. The DNS server would also be verifiable to prevent imitators.

So, the request would go to the PiHole and if it was not being filtered the PiHole would make the request of whatever upstream server is configured same as before.

Useless display in refrigerators finally revealed as corporate ploy to install billboard in consumer’s kitchens.