Yes - the value you enter in the water level offset field will be added to everything that forms the map project; tracks, boundaries and spot depths (new in v2). So in your example, a water level offset of -20 will reduce the depth of the finished project by 20.
In most maps, you will still end up with isobaths for the negative values, and your shoreline would end up as -20. With the new editing features in RM, you can fic your map in a few ways - e.g. select all isobaths < 0 and move them over to the land layer, or change their colour to a land colour, or use a "fixed depth palette" from 0 with a land colour for < 0.