Yeah, more or less.
You have 1 source file, the org file. In this file you write a document explaining what, why, and how each feature should be implemented, you then implement it within a code block and probably give a few examples how to use it. Org-babel can extract those code blocks and create a souce code file for you, this is where you get your working sourc code. And then you can extract those comments and examples to, say, HTML, markdown, etc. and get your code documentation. That main org file is called the source of truth -- you get your code and your documentation from one place. What's more, sine it's in emacs, you can write elisp to help you generate ever more fancy output or you can mix different tools from different languages and combine them together to final documentation or souce code -- just like Jupyter or R markdown but far more powerful.