The address you’re referring to is called a loopback address.
Anycast means that multiple hosts on the network in arbitrary locations may all use and respond to the exact same IP address.
8.8.8.8 is an anycast host - meaning that Google has many hosts all over the world with this same IP address, and whichever instance of it is nearest to you is the one where your request will be routed.
Suppose your network has 20 tower sites - if you were to create an anycast address 100.100.100.100 and assign it to 20 DNS servers, you could put an instance of that server in every tower site on your network, and DNS requests from each tower site would be routed to the local instance. If the node fails, then it will stop participating in the anycast, so some other instance of 100.100.100.100 will take up the slack while you can repair the failed node.
Here’s a basic overview of how you accomplish this:
The way you do it is advertise the route for 100.100.100.100 into OSPF from every box that is going to participate in the anycast. The host will also need its own unique (not-anycasted) address so that its own requests will be able to have its replies properly routed back to it.
So the host would run OSPF and have, say, a /30 between it and the site’s router - e.g. 100.100.100.0/30 with .2 = the unique address of the anycast node. The node will advertise 100.100.100.100/32 into OSPF, and the directly-connected router will obviously want to use that node as the shortest path to the anycasted address. There will be other 100.100.100.100/32 advertisements in OSPF, so some router elsewhere in the network can choose whichever one is closest.
You would monitor the health of the node using its unique address (100.100.100.2) and whenever that node sends a request to the central cacheing resolvers, it would send the request from the .2 address. If the node stops responding to DNS queries, you would take it “out of service” by dropping the advertisement for 100.100.100.100 - if the node actually dies completely or gets its connectivity broken (a tech pulls the wrong network cable, etc) then naturally the device will drop out of the pool because it can’t announce itself anymore.
If the cacheing anycast node allows you to define static entries, you could do something clever like configure each node to give its unique address as the answer to the query mynode.example.com (or whatever) - so if working with a customer and you need to know which server is actually talking to them, have them ping “mynode.example.com” and see what IP comes back, and what the ping time is, etc.
Another good thing do resolve locally in the anycast nodes would be all of the RFC1918 private IP reverse DNS → NXDOMAIN so that queries for local IP addresses wouldn’t go bouncing up the chain to the central servers or to the Internet. (the root servers get tons of wasted traffic asking for reverse DNS on private IP space)