Any digital device that can produce sound has a DAC built into it, your TV, Computer, Phone, CD player, AVR, iPad, iPod . Other than the CD player and AVR they also have their own speakers and or head phone jack.My setup is in my sig:
Audio Research SP 9 Mark II
DENON POA 1500, Yamaha CDX 2020
Thorens TD 160, Nagatron 185 E Cartridge, Juicy Music Tercel II
Anthony Gallo Acoustics Nucleus Reference 3 (Ohm Walsh 2000 tall on order)
If you have a head phone jack you can hook that device up to a analog 2ch system with this.
The CD player and AVR will most likely already have RCA output that can hook to a 2ch system. But also my have the option to output a digital signal, bi-passing the internal DAC, with optical, coaxial. You will also have that option on the TV, Computer, Phone, iPad, iPod, with optical, USB.
In short, a digital device generally can bi-pass the internal DAC and use one further down the line, like a stand alone DAC your asking about. You don't or can't send your digital signal through 2 DACs.
Now does a stand alone DAC sound better than one built into a device?
Yes, No and Maybe
You may buy a stand alone DAC, and find your phone plugged directly into your preamp sounds better using the head phone jack.
but that is another thread.
Guess I'll just use it for 44.1khz CDs/Blurays.