I presume DL means Distribution List? If so you need to create a JIRA ID and assign the list email to it and assign that ID as a watcher. Don't put the ID in the jira-user group, or other logon group, and it won't count against your licenses. You will need to give it browse access to the project.
You can only add users to a watcher list. A distribution list is NOT a user - it's an artefact (with an email address) held outside JIRA that JIRA has no knowledge of.
Your only practical option is to trick JIRA into representing it as a user - add a dummy user with the list's email address.
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