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OK, let's say your rule is: Source: 10.1.1.0/24 ; Dest: apple.com ; Service: https

If the gateway sees HTTPS traffic from a source 172.16.1.1 to any IP, the gateway does not do a lookup on the FQDN because the source cannot match the rule.

If the gateway sees SSH traffic from 10.1.1.1 to any IP, the gateway does not do a lookup on the FQDN because the service cannot match the rule.

If the gateway sees HTTPS traffic from 10.1.1.1 to any IP, the gateway DOES do a lookup for apple.com, because the connection could match the rule. If the destination IP matches the returned IP address from the lookup, the rule is matched. If it does not match, the rule matching continues down the policy.