What is the nuance to setting a DNS server on LAN instead of DNS forwarding?

Installing and Using OpenWrt Network and Wireless Configuration
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I noticed the Network -> Interfaces -> LAN -> Advanced Settings has an option to set custom DNS Servers:
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I followed this example to configure my router to leverage dnsmasq's DNS forwarding feature.

Now I'm curious what the differences and tradeoffs are between these two options. Can you think of different use cases that highlight use of either setting?

In my case, my upstream DNS server maintains a DNSBL (DNS block list) for adblocking. Thus I think I want to use DNS forwarding to ensure the openwrt box does not capture any DNS lookups.

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One difference is that the DNS forwarding feature allows you to forward specific domains. But if you don't specify the domain then it's similar to configuring DNS servers on an interface. The difference in this case is that DNS servers on interfaces are automatically added to resolv.conf.auto used by dnsmasq when the interface is brought up, and removed when the interface is brought down.

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Ah that clarifies some things for me.
DNS forwarding seems like a more global change.
Setting a DNS server on the interface feels more local.

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