Azure Private DNS Zone

Azure Private DNS provides a reliable, secure DNS service to manage and resolve domain names in a virtual network without the need to add a custom DNS solution, without these DNS entries being accessible from the internet.

This works by linking to one or many Virtual Networks, and the DNS Server on the Virtual network needs to be configured to look up against the Azure Magic IP, either by default or by the custom DNS server.

Auto Registration can be enabled on a Link to a VNET, but each VNET can only have Auto Registration enabled once. This service allows for VMs to be discoverable on a custom domain.

It is important to note the same DNS Zone can not be linked to the same Virtual Network multiple times. contoso.com can be linked to up to 1000 Virtual Networks, but 2 instances of the contoso.com can not be linked to the same Virtual Network.
Private DNS Zones can be created with the same name as long as they are in different resource groups. This is a common occurrence with Private Links, and should be considered upfront.

Restrictions and Limitations

Resource Limit
Private DNS zones per subscription 1000
Record sets per private DNS zone 25000
Records per record set for private DNS zones 20
Virtual Network Links per private DNS zone 1000
Virtual Networks Links per private DNS zones with autoregistration enabled 100
Number of private DNS zones a virtual network can get linked to with autoregistration enabled 1
Number of private DNS zones a virtual network can get linked 1000

Private DNS Zones must consist of at least 2 labels (contoso.com, not contoso), and up to a max of 34 labels.

You can not create zone delegations (NS Records) in a private DNS Zone. This can be accomplished by creating another Private DNS Zone with the required labels.