Yep, as Newbee said, the inputs on a DAC are all for a digital signal and, depending on the particular DAC, those inputs may be coax, optical/Toslink and/or USB.
CDP's have two main components inside one box, a transport to pick up the data from the CD and a DAC to convert it for output from its analog out jacks. If it also has the provision for digital output the internal DAC is bypassed and the digital signal made available at the digital output jacks, commonly coax and/or optical.
The digital signal going to the DAC may come from a CDP, Squeezebox, Airport Express, Sonos or anything else that's got the output.
The output of the DAC is left and right channel analog signals, suitable for input to your preamp/amp.