Catalyzes the hydrolysis of diacylglycerol (DAG) to 2- arachidonoyl-glycerol (2-AG), the most abundant endocannabinoid in tissues. Required for axonal growth during development and for retrograde synaptic signaling at mature synapses. Belongs to the AB hydrolase superfamily. Lipase family. 4 isoforms of the human protein are produced by alternative splicing. Note: This description may include information from UniProtKB.