If a domain is using CloudFlare DNS with third party SSL on the domain, will it provide data encryption from end user machine <-> CloudFlare <-> Hosting server?

Yes, if the domain is using Cloudflare DNS, and 3rd party SSL is installed on the domain, it will provide data encryption from the end-user machine <-> Cloudflare <-> Hosting server.

If the installed certificate is self-signed, we have to enable Full encryption mode from Cloudflare.

We will have to select Full strick encryption mode from Cloudflare when an SSL certificate is issued by a publicly trusted certificate authority(Like Rapid SSL). Full strick SSL mode provides encryption from end-users to Cloudflare and from Cloudflare to the origin server.

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