Yes a DOS environment is necessary if you want to follow through code examples, and tackle some of the optimization challenges (but mostly only try to beat the book if you have an actual 8086/286/386/486/Pentium I processor - or a cycle-precise emulator).
I read the whole book(s) thrice cover to cover without touching a computer (these were the days) in my teens and it was easy to follow, and full of nuggets for a young aspiring programmer. I had third-hand 8086, 386 and pentium 75 boxes at the time, but didn't open Turbo C before I'd finished the book, and it was to try and implement a bsp tree, then a whole 3d stereo (anaglyphs) software renderer (inspired by the book).