If you want your DAC to receive the full signal without any low end frequencies being cut off, then yes set it to full range speakers and it will be mostly an unmodified signal depending on the player. (aside from resampling and mixing with other audio)
I'm not sure exactly how windows does the frequency cutoff, whether it's a hard 40hz cut or a fast roll off or slow roll off, someone might have to measure it. See post #4 (it does nothing, it is only a flag for players to read)
There's also another option when you go into Properties of a DAC and visit the Advanced page.
"Enable audio enhancements" (might not be available on all DACs)
Some DACs may have a specific tab there for audio enhancements as well.
I would also disable that, which prevents filters from modifying the signal. I am unsure if full range speakers setting falls under this, but Equalize APO and whatnot uses this feature to intercept audio outputs and modify them.
These settings only affect DirectSound and WASAPI Shared output from players.
If you use WASAPI Exclusive, your DAC will always receive the full unmodified non-resampled signal sent by the player, as this entirely bypasses Windows' mixer which these settings are for.