By default, DNSMasq reads /etc/hosts for local entries. DNSMasq allows you to manually enter hosts with their IP addresses in a file, e.g. /etc/hosts . This way you can add an entry like:
Etcetera. Plus, if you also run DHCP with DNSMasq and you set DNSMasq as DNS server on your clients, DNSMasq will respond to requests of local machine names. For example, if you have a box called "box1" and that box is getting it's IP from DNSMasq, other clients using your DNSMasq installation as DNS server can resolve box1.
# If you don't want dnsmasq to read /etc/hosts, uncomment the
# following line.
# or if you want it to read another file, as well as /etc/hosts, use