The answer is yes to both questions.
Yes, it uses idle cycles. Back in the bad old days, processors had no real power-saving mechanisms. So they were drawing maximum power all of the time. However, modern desktops (C2D era and newer) have extensive power-management features, that throttle back the CPU speed and lower the voltage when they aren't being used. However, in many cases, overclocking requires that you disable the power-saving features anyways. So if you are going to overclock, you might as well do DC to suck up the unused cycles.