Yes but it's not doing anything to remove the nitrate and phosphate that has developed. It may not be enough N and P to be a problem, so that's good. But the stuff that settles out is just heavy food particles, and actually you'd want to keep those to feed your corals; so you're losing a benefit of NSW (all the food particles).
If you have a choice, a lighted place would be a better storage area, since this would keep the phytoplankton alive longer, which would filter the water longer.
So ironically, the best storage of NSW is a mixed, lighted place, to keep the phytoplankton alive and to keep the food particles from settling, and the worst is a dark non-mixed place which kills the phytoplankton and lets the food particles settle out.
If you have a choice, a lighted place would be a better storage area, since this would keep the phytoplankton alive longer, which would filter the water longer.
So ironically, the best storage of NSW is a mixed, lighted place, to keep the phytoplankton alive and to keep the food particles from settling, and the worst is a dark non-mixed place which kills the phytoplankton and lets the food particles settle out.