A diacylglycerol is a glycerol with only two fatty acids esterified to it. Diacylglycerol can be produced in several ways. Digestion of a triacylglycerol by triacylglycerol lipase yields a diacylglycerol.

Diacylglycerol lipase catalyzes hydrolysis of a fatty acid from diacylglycerol to make a monoacylglycerol.

Diacylglycerol + H2O <=> Monoacylglycerol + Fatty Acid

Diacylglycerol is also a participant in the reaction to make phosphatidylcholine:

CDP--Choline + diacylglycerol <=> CMP + Phosphatidylcholine (catalyzed by CDP-Choline: 1,2-Diacylglycerol Phosphocholine Transferase)