d_k_bo,

AFAIK, instead of forwarding your DNS requests to an upstream DNS provider (eg. 1.1.1.1), it resolves the domain step by step. First, it asks the root nameserver “where's org.?”, the returned server is asked “where's example.org.?”, the returned server is asked “where's www.example.org.?” and so on until you get your target IP.

See also https://en.wikipedia.org/wiki/Domain_Name_System#Address_resolution_mechanism

Edit: there is also a good explaination on https://docs.pi-hole.net/guides/dns/unbound/#what-does-this-guide-provide

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