No, it shouldn't be external, it'll just break things for an AD domain.
Check your Forwarders if you have any set?
To check the forwarders:
1. Open the DNS Console
2. Right click on your server and select Properties
3. Select the Forwarders tab
4. For each IP listed there (if any) run:
nslookup
IPAddress
e.g.
nslookup
4.2.2.4
That will check to see if the name servers you're using are responding. If they are not, remove them then try:
nslookup
You may need to flush your server cache first. That can be done from the DNS server console by right clicking on the server and selecting Clear Cache.
By default your server will use Root Hints (see Root Hints tab), which is more effort than Forwarders but should work. If it does not, you need to check network access to see if your server is allowed to send outbound UDP on port 53.
If it does work with Root Hints, but not with your forwarders you have a few choices:
1. Raise the issue with the forwarder host (your ISP?)
2. Find new forwarders
3. Continue using Root Hints
HTH
Chris