Yes! The option to notify Shopify when tracking is deleted will occur in the following scenarios:
Note: The option to notify a sales channel if tracking has been deleted is only supported with Shopify at this time.
Deleting the Shipping Label
If you delete the shipping label while the order is in Shipped status, you will be given the option to notify the sales channel of this change. This will change the status in Shopify from Fulfilled to Unfulfilled.
Mark as Awaiting Fulfillment
If an order in Shipped status is Marked as Awaiting Fulfillment, you will be given the option to notify Shopify after selecting the Mark as Awaiting Fulfillment button.
Cancel the Order
If you cancel an order in Shipped status, you will be given the option to delete the associated shipping label and tracking info. After selecting this option, you will be given the option to notify Shopify of this change. 
Deleting Tracking Info
If tracking info was manually entered for an order that imported from Shopify and then deleted, you will be given the option to notify Shopify.