Yes, I imagine that's why the option is there. It's the frequent re-charging to keep the battery fully charged which eventually "kills" the battery so that it can't hold a charge any longer.
However, you'll need to keep remembering to go back into BIOS Setup every few months to re-enable battery charging, don't let it stay completely flat for a long period (it will lose charge gradually over time, even when not in use) as that's just as bad as over-frequent charging.
The other alternative is leave battery charging enabled and just remove the battery instead ( as I do). Put it back every few months to check that it's charge percentage is not getting too low.