Yes. the spreadsheet will display one column for every taxonomy related to the post type. For example, the posts spreadsheet shows a “categories” column where you can add categories to posts. You simply type or choose the taxonomy you want to assign to the post, if you remove it, the term is unassigned from the post. When you enter a value that doesn’t exist on the database, the sheet will create a new term.
The terms can be separated by a comma and you can define the hierarchy like this: category > child category > child category.
Note: If you want to change the character used as separator, you can go to settings > advanced settings > solution to weird errors > Separator for taxonomy terms cells.