Yes. The Encryptor setup is basically just to tell odrive where to look for encrypted files.
If you remove an Encryptor folder, the encrypted content stays in the cloud, where it is. You can always recreate an Encryptor folder and point it to the same location. When you open that folder in the odrive desktop client it will prompt you for the passphrase and then you are back in business.
If you do remove an Encryptor folder, make sure that you do not have anything inside that folder on your local system that hasn't yet synced up to the cloud (green checkmark). Removing the Encryptor folder from the odrive web client will end up removing that folder locally too. When this happens, odrive will attempt to move the local folder it to the OS trash, but it may be too large (in the Windows case) and Windows will end up just deleting the files in there. Just something to keep in mind.