Not a dumb question at all, in fact a very good one!
There are 2 trains of thought here, and I think you would find most are evenly split on this.
I've used mine with each channel set to pre fader, so any EQing and compression will be heard in the monitor. Others will say that compression interferes with the monitor, and using too much will cause monitor feedback.
I use compression very gently with the DL. Typically no more than 4:1 on vocals, and 5:1 on bass guitar. Threshold set to only a few db reduction. I also add a fair amount of gain on the comp output, which really helps putting vocals out front. On vocals, I start at 2:1, and move up as needed to reduce the dynamic range accordingly.
It is also true that vocal compression may not be desirable in monitors. But to me, it is very important to have channel EQ in the monitor mix.
YMMV