Yes.
Changing the notify to 'Yes' means 'When I click Save, send this student a notification about the change I have just made'.
When you next visit the form, the setting will, once again, show the default option of 'No' - the teacher can decide at this point if this new update is something they also want to send to the student (if it is, then they can change it to 'Yes' again for this notification).
There currently isn't a 'Yes and default to sending notifications to this student in the future' option (nor is there and behind the scenes data to save this setting for individual students).