Você precisa dessas declarações no seu arquivo dnsmasq.conf
:
expand-hosts
domain=YourLocalDomain.Name.lan
De Manual do dnsmasq :
-E, --expand-hosts
Add the domain to simple names (without a period) in /etc/hosts in the same way as for DHCP-derived names.
Deve ficar bem claro, eu acho. Você também pode querer usar bogus-priv
:
-b, --bogus-priv
Bogus private reverse lookups. All reverse lookups for private IP ranges (ie 192.168.x.x, etc) which are not found in /etc/hosts or the DHCP leases file are answered with "no such domain" rather than being forwarded upstream.