You really need to do some studying on how DNS works.
It functions largely the same regardless if you're talking external DNS or internal. So let's look at an external website. This is one domain (xaviermace.com), therefore one zone record.
xaviermace.com A 23.229.190.232 600s (00:10:00)
xaviermace.com NS ns51.domaincontrol.com 3600s (01:00:00)
xaviermace.com NS ns52.domaincontrol.com 3600s (01:00:00)
xaviermace.com CNAME www @ (01:00:00)
www is not required to be a website. The www is a CNAME. You'll generally have multiple CNAME's on a domain. Your www CNAME normally points towards your primary A (Host) records which is denoted by the @ symbol. CNAME's don't point towards IP addresses, they point to host names (IE to point webmail towards your 3rd party email provider). A records point towards IP addresses as they are specifying
hosts on this domain. On an internal domain, the structure is the same. The one item we haven't touched is the TLD. Adding a TLD doesn't make it a FQDN. The TLD is telling DNS where to start hunting for it's destination. The TLD tells it which root name servers to start looking at (AKA the authoritative name servers). The authoritative name servers actually maintain the records for the domain or delegate to some other name servers. This is probably why the practice started of giving internal domains a non existent TLD. Adding .loc is effectively accomplishing nothing other than making it clear to a person that it's an internal only domain. In your case, you have a HOST (say server1) and you're specifying a TLD (.loc). You have no domain specified, therefore it's not a FQDN. Let's pretend you were hosting AT. Since you have separate domains for everything, it would look like this:
DNS: anandtech.com
Website: anandtechwebserver.com
Email: anandtechemail.com
Forums: anandtechforums.com
That would be rather confusing to anybody using it. Hosting multiple website from a single host is a configuration matter on the web server, not a DNS issue. Nor is it a "web DNS server", it's just a DNS server. On shared hosting providers, you'll have dozens or even hundreds of websites resolving to the same IP address. My above example is a GoDaddy IP address. A reverse lookup shows that IP is hosting 84 websites.