Yes, it does. This is an equivalent of selecting "compatibility mode" for that one old Windows app you still use.
Also, this is on X11. On Wayland you don't even have to do that, as non-hidpi aware apps get automatically scaled up.
(and amusingly, just yesterday I had an occasion to test it truly out-of-the-box and turns out that things improved over past few years and now both GIMP and git-gui work just fine - and both are rendered in full resolution)
