So does this run DOS on Windows? Or DOS on Linux? Or Linux on DOS? Or DOS on Linux on Windows? Would be nice if there were an explanation in the README.
The GIF's prety much crystal clear: it runs QEMU on Linux. And QEMU runs whatever you want, because it's a machine emulator/virtualiser, in this case it's running as x86 with MS DOS on top.
You could perhaps argue "inception" since it's Linux running a DOS VM running Linux commands. But the charitable explanation is the author just wanted a convenient environment to do DOS development rather than bare metal (think of it like a Vagrant box).