Yes. Modding refers to anything that modifies or introduces new content to a game. This can include tweaks to the game rules or engine, bugfixes, and new or modified quests, areas, characters, items, spells, and/or dialogue.
Mod is short for modification. What's usually called modding is any unofficial, fan-made modifications for a game. Their scope includes, as @semiticgod mentioned, pretty much every aspect of the game.
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