Yes, the narrator in first-person narration is a character in the tale who tells the story from their own point of view. The pronoun I is frequently used in the narration (or we, if the narrator is speaking as part of a group). The character that recounts the narrative might be in the thick of the action or more of an observer from the sidelines, but in any case, you're receiving that character's account of what happened.
It also implies that the character's ideas, emotions, prior experiences, or even their distorted perceptions of what they see and hear impact their impressions and descriptions.
