Yes.
Orbiter represents distances as numbers with a floating decimal point and a limited number of decimal places. The bigger the number is, the larger the difference is between it and the nearest number to it that Orbiter can represent.
For example: Let's say that we're representing distance with a 5 digit decimal number. The number is encoded like this, one digit for the exponent (how far the decimal point is shifted, and four digits for the rest of the number. 01000 means 1.000 with the decimal point shifted 0 spaces, 11000 means 1.000 with the decimal point shifted 1 space (10.00), etc.
If we're 1 meter from the center of our system, then the number will look like this: 01000, and will mean 1.000. The closest number to this that we can represent with our system is either 00999, or 01001 (0.999 or 1.001). so at one meter away, the smallest change in distance is a millimeter. Now let's say we're a billion meters from the center of our system: Now our number looks like this 91000 (1.000 with the decimal point shifted nine spaces, or 1,000,000,000). The closest number we can represent to this number with our system is 90999 or 91001, which represent 999,000,000 and 1,001,000,000. The smallest change in distance we can represent at 1 billion meters away is a million meters, or a thousand kilometers.
Now, the system Orbiter uses is a bit different. It uses binary instead of decimal, and instead of 5 digits, uses something more like 64, with 11 for the exponent, 52 for the number, and one for the sign.