A/V DACs, how exactly do they work?

I feel very silly asking this but I can't seem to find a direct answer anywhere on the internet. 

I recently purchased a yamaha 3070 as part of a package speaker deal. (I'm relatively new to audio, and have mostly just stuck to CD players diectly into stereo receivers without internal DACS.) 

Now, since this A/V receiver has an 
  • audiophile-grade 32-bit/192kHz ESS Sabre PRO Premier digital-to-analog converters for 7 main channels

How exactly would I use this internal DAC? Do i Simply run a male to male from a CD player? Or a USB to  male from my computer into andio inputs and that's it? 

Any digital out from a cd player or transport will work, the Yamaha has both coaxial/RCA and toslink/optical digital inputs. As far as your latop goes there is no usb so you can't run usb direct from your computer. There are HDMI inputs does your computer have an HDMI out? You could also run the usb from your computer into a usb/spdif converter then run a coaxial cable from the converter to your receiver. I hope that all makes sense!
Don't feel silly asking questions. We all had to learn this stuff.
BTW, congrats on moving to digital music.
Yup! It makes sense. I have a headphone to RCA from my laptop but that seemed a little degrading. 

I can easily HDMI to it and I also have a usb to RCA splitter. So plenty of ways to get Flacs and other high kbs formats over. 

Good to know it's as simple as I thought. I wasn't sure if only the coaxial optical and toslinks were passed through the internal DAC. 

Im sure all are better used depending on what you're listening to. 

Thoughts on best way to input computer? 
to must use the internal DAC you must input a digital signal to the optical (audio 1, 2 or AV3) or coax (audio 3, AV 1, 2) or hdmi inputs (AV 1-7).