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yes the email address is the same on the azure domain and the local domain.Take care, that with ADconnect, if the account has the same UPN/Email address in AD and Azure AD, AD properties will replace Azure AD properties, included the password to use if you choose to activate PHS.
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Active Directory (AD) is a Microsoft brand for identity-related capabilities. In the on-premises world, Windows Server AD provides a set of identity capabilities and services, and is hugely popular (88% of Fortune 1000 and 95% of enterprises use AD). This topic includes all things Active Directory including DNS, Group Policy, DFS, troubleshooting, ADFS, and all other topics under the Microsoft AD and identity umbrella.
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You can have a domain controller synchronized in a VM in Azure. But, I don't think that it is what you mean.
Another different way to use Domain Accounts in Azure consists to synchronized AD Accounts by ADConnect to Azure AD.
You can synchronized users and groups from AD to Azure AD. And then use these groups/users in Azure.