The problem
Pi-hole is provides DNS filtering solution and local DNS record but for the actual DNS resolution it relies on Public DNS resolvers like Google, OpenDNS, Cloudflare etc. It does not actually make the requests private and here comes the role of unbound. Unbound can act as a recursive DNS server or it can be configured to forward requests to Public resolvers through DOH.
Installation
sudo apt install unbound
Configure unbound
Config file path
/etc/unbound/unbound.conf.d/pi-hole.conf
Configuration
server:
# If no logfile is specified, syslog is used
# logfile: "/var/log/unbound/unbound.log"
verbosity: 0
interface: 127.0.0.1
port: 5335
do-ip4: yes
do-udp: yes
do-tcp: yes
# May be set to yes if you have IPv6 connectivity
do-ip6: no
# You want to leave this to no unless you have *native* IPv6. With 6to4 and
# Terredo tunnels your web browser should favor IPv4 for the same reasons
prefer-ip6: no
# Use this only when you downloaded the list of primary root servers!
# If you use the default dns-root-data package, unbound will find it automatically
#root-hints: "/var/lib/unbound/root.hints"
# Trust glue only if it is within the server's authority
harden-glue: yes
# Require DNSSEC data for trust-anchored zones, if such data is absent, the zone becomes BOGUS
harden-dnssec-stripped: yes
# Don't use Capitalization randomization as it known to cause DNSSEC issues sometimes
# see https://discourse.pi-hole.net/t/unbound-stubby-or-dnscrypt-proxy/9378 for further details
use-caps-for-id: no
# Reduce EDNS reassembly buffer size.
# IP fragmentation is unreliable on the Internet today, and can cause
# transmission failures when large DNS messages are sent via UDP. Even
# when fragmentation does work, it may not be secure; it is theoretically
# possible to spoof parts of a fragmented DNS message, without easy
# detection at the receiving end. Recently, there was an excellent study
# >>> Defragmenting DNS - Determining the optimal maximum UDP response size for DNS <<<
# by Axel Koolhaas, and Tjeerd Slokker (https://indico.dns-oarc.net/event/36/contributions/776/)
# in collaboration with NLnet Labs explored DNS using real world data from the
# the RIPE Atlas probes and the researchers suggested different values for
# IPv4 and IPv6 and in different scenarios. They advise that servers should
# be configured to limit DNS messages sent over UDP to a size that will not
# trigger fragmentation on typical network links. DNS servers can switch
# from UDP to TCP when a DNS response is too big to fit in this limited
# buffer size. This value has also been suggested in DNS Flag Day 2020.
edns-buffer-size: 1232
# Perform prefetching of close to expired message cache entries
# This only applies to domains that have been frequently queried
prefetch: yes
# One thread should be sufficient, can be increased on beefy machines. In reality for most users running on small networks or on a single machine, it should be unnecessary to seek performance enhancement by increasing num-threads above 1.
num-threads: 1
# Ensure kernel buffer is large enough to not lose messages in traffic spikes
so-rcvbuf: 1m
# Ensure privacy of local IP ranges
private-address: 192.168.0.0/16
private-address: 169.254.0.0/16
private-address: 172.16.0.0/12
private-address: 10.0.0.0/8
private-address: fd00::/8
private-address: fe80::/10
Restart the service
sudo service unbound restart
Configure Pi-hole
configure Pi-hole to use your recursive DNS server by specifying 127.0.0.1#5335
as the Custom DNS (IPv4)
For further help
https://docs.pi-hole.net/guides/dns/unbound/