you shurely use dns.
if you do not use it in a more direct way, you use it indirectly
dns can be autodiscovered if you have not set it manually.
as you said, you have a proxy server through which you exit outside.
let`s have t this way: if dns servers were not invented, today we weill still have to enter ip addresses to connect to yahoo, hotmail, msn, intel, and, microsoft, apple and so on... [to their webpages i ment, but you figured it]
if you exit through a proxy, you will only have to redirect your computer`s requests to that proxy. the proxy itself has the dns setup or it autodiscovered it.
the reason you might need to set up a dns behind a proxy server is because your local network might have a few webservers which provide services.
that is all.
ps for intrested dude: the dns cache is kept 360 minutes. at most.