| NoTongue |
No, like most style feats it says it works with unarmed strikes, think of them martial arts styles. An unarmed strike is a specific attack detailed here.
http://www.d20pfsrd.com/equipment/weapons/weapon-descriptions/strike-unarme d/
It can be used at any time. As long as you activate it as a swift action at the start of combat it's a permanent damage increase to unarmed damage.
Sir Thugsalot
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Dragon Style is one of the best martial feats in the game: "...While using this style, you gain a +2 bonus on saving throws against sleep effects, paralysis effects, and stunning effects. You ignore difficult terrain when you charge, run, or withdraw. You can also charge through squares that contain allies. ....
You get all of that as a single feat, and there's no requirement for you to actually use unarmed-strikes while the style is active.