It depends, but DNS lists are by far the most common, and you can indeed circumvent it by using another DNS server.
Generally it’s a good idea to disable ISP content blocking if you can, because they can cause all kinds of problems (slowdowns, false positives).
But it doesn't go through your ISPs DNS infrastructure, it goes direct to the nameserver for the parent domain. And even that doesn't happen if your local resolver has the result cached. The easiest way to block DNS lookups is at the DNS server; using DPI to block DNS lookups is straying into sledgehammer/nut territory.