Yes it can, it can also become a keyboard in fact.

One thing I'm kinda missing is that it doesn't seem to be able to become both at the same time on a system that has the screen space for that. Like a tablet or Z Fold series.

:D I avoid Samsung products but I'm happy that at least exists. I hope it's not patented, and Google is both able to put the same thing into Android, and that it's available in AOSP