Yes - in short that's what it means. Here's a more complete explanation from the wikipedia article:
Originally Posted by vectra
Artistic license... probably explains it better than I could.
(also known as dramatic license
, historical license
, poetic license
, narrative license
, licentia poetica
, or simply license
) is a colloquial term, sometime euphemism
, used to denote the distortion of fact, alteration of the conventions of grammar or language, or rewording of pre-existing text made by an artist
to improve a piece of art
. An example of artistic license is if a visual artist decided it was more artistically desirable to portray St. Paul's Cathedral
next to the Houses of Parliament
in a scene of London
even though in reality they are not close together.