Domain Controller authentication is not required to unlock the workstation.
This setting controls the behavior of the system when you attempt to unlock the workstation. If this setting is enabled, the system will pass the credentials to the domain controller (if in a domain) for authentication before allowing the system to be unlocked. This may cause a denial of service if the workstation looses connectivity to the domain controller.
How this relates to the STIG checklist: STIG vs SCAP benchmark.