No, it's right on the cutter face. The reason it's "full diameter" is bigger is because being designated "DC" (diameter cut) it can cut a full 2" face width. The black 4-insert cutter you see in my first photo is also a 2" face mill, but can only cut 1.69" full width.
Note in the photo above how the cutting tips of the inserts (at the face) hit the scale at 1/4" and 2-1/4".
Note in the photo above how the cutting tips of the inserts (at the face) hit the scale at 1/4" and 2-1/4".