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does/can Pi-Hole use encrypted DNS?

I have a raspberry-pi on my home network running Pi-Hole and my router’s DHCP server gives all devices on my network the Pi-Hole as the DNS address

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Yes, you can follow the instructions from the wiki https://github.com/pi-hole/pi-hole/wiki/DNSCrypt-2.0

It doesn't have built in support for it since it's just using dnsmasq under the hood, but you can install something like dnscrypt-proxy and then configure pi-hole (i.e. dnsmasq) to use it as its upstream DNS server.

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