Your CAD drawing is a detailing some features or object distributed in Euclidean space. That drawing can reference some arbitrary datum like 'paper coordinates' (0, 0). That drawing can also be georeferenced to use the datum of a coordinate reference system datum like (0, 0) UTM. In the case of the UTM georeferenced drawing your features would have coordinates allowing for the drawing to display in the correct location in a GIS.
You can tell if your CAD drawing was georeferenced if it has an accompanying world file. This world file tells the GIS to display your CAD in the correct place. The world file will have the same file name as your CAD drawing but with a .wld extension.
You will need to know what coordinate reference system the CAD's world file is referencing and make sure your QGIS project is using that same coordinate reference system for the drawing to display in the correct location.