greektranslator yes, it affects plain links, as well as markdown and bbcode links.
(in the screenshot it's a different layout option that was enabled so the first link was converted to a block. But with the mentioned "inline" mode, it would appear similarly to the "link with label" lower in the screenshot, except with the page title as the text)
The inline preview only replaces the link text if the link didn't have one. So https://example.com, <https://example.com> and [url]https://example.com[/url] get updated with the page title. But [Title](https://example.com) and [url=https://example.com]Title[/url] keep the user-provided title.