Yes. In a nutshell...
You download Lion Installer from the App Store.
Run it and it creates a small <1GB partition on the boot drive and copies a disk image of the installer onto it.
It then reboots. Now, if you reboot from the drive that still has the installer app on it, it will install right from another disk image (4GB) contained inside. But if you reformat, or try to install later, it will first download the disk image to the drive and install from it. This lets the recovery partition stay below a gig so you barely know it's there.
The nice thing about that is it means you can install right to the latest version instead of having to install 10.7.0 then update it to 10.7.5 or whatever. (At least I assume that's how it works. It'd be silly not to.)
So yes, unless you went out of your way to delete the recovery partition, it will be there no matter what. It is also what allows you to reformat your boot drive while still not requiring a DVD to boot from.
The future is so bright, we have to wear shades!