Some tweaking for dnsmasq

DD-WRT has a lightweight, caching DNS proxy with integrated DHCP(+TFTP) server built in (dnsmasq). It's well suited for use on your home LAN and has a number of options so you can tweak it to your needs. You can add these options in DD-WRT's config in the "Services" tab in the "Additional DNSMasq Options" textarea. Here're the options I use ...

no-resolv
no-poll
bogus-priv
domain-needed
stop-dns-rebind
cache-size=10000
server=4.2.2.1
server=4.2.2.2
server=4.2.2.3
server=4.2.2.4
server=4.2.2.5
server=4.2.2.6

You can look up all the options in dnsmasq's manpage. The various server entries specify the upstream DNS servers that dnsmasq will use to forward DNS queries to. You might want to use your ISP's DNS servers here since most probably they're the fastest to reach by your router.

PS: note that the above options are by no means meant for a regular dnsmasq setup, but for use with DD-WRT. I should also add that I do not use any of dnsmasq's DHCP or TFTP server features. Probably the most useful of the above options is cache-size since by default its value is only 150 which gets full pretty fast.

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