Yes, Domain Model Library (DML) is a Business Logic Layer (BLL). This library should contain domain model entities (which should be persistent ignorant) and domain services.
Why that is a technical problem? Any changes in DAL will require compilation of DML. If you will inverse dependency, then DAL will act as a plugin for you domain. You will be free to change it (persist data in memory, file, or use other db provider) without affecting BLL.