DSL is basically creating your own small sublanguage to solve a specific domain problem. This is solved using method chaining. Languages where dots and parentheses are optional help make these expression seem more natural. It can also be similar to a builder pattern.
DSL aren't languages themselves, but rather a pattern that you apply to your API to make the calls be more self explanatory.
One example is Guice, Guice Users Guide http://docs.google.com/View?docid=dd2fhx4z_5df5hw8 has some description further down of how interfaces are bound to implementations, and in what contexts.
Another common example is for query languages. For example:
NewsDAO.writtenBy("someUser").before("someDate").updateStatus("Deleted")
In the implementation, imagine each method returning either a new Query object, or just this updating itself internally. At any point you can terminate the chain by using for example rows() to get all the rows, or updateSomeField as I have done above here. Both will return a result object.
I would recommend taking a look at the Guice example above as well, as each call there returns a new type with new options on them. A good IDE will allow you to complete, making it clear which options you have at each point.
Edit: seems many consider DSLs as new, simple, single purpose languages with their own parsers. I always associate DSL as using method chaining as a convention to express operations.