This technique is not unique to this Lyngdorf and there have been other designs to control the volume by changing an analogue quantity under the command of a digital signal.
For instance, in the 1990s Sony, has designed the volume control of its
SDP-EP9ES processor around a current to voltage converter chip in which the master current source was made variable under the control of a D/A converter that took the output of the volume control knob coder to generate a DC voltage. I very much suspect that the built-in volume control of the Burr Brown PCM1738 and PCM179x DAC family works the same way or a very similar method.
That is to say that a digitally controlled volume control has not necessarily to be entirely digital in the sense that it computes the input data to scale their values prior to D/A conversion; it can be a mixed design that is actually more of an analogue volume control than a digital volume control.