This will not alter any DNS records on cPanel's authoritative DNS but affects the way the cPanel plugin tracks what records are signed up to Cloudflare.
The Cloudflare data for each individual account is stored in the following location:
You can either SSH into that specific user account and remove the data, or you can use the user's file manager.
Once you remove the .yaml file all Cloudflare information will be wiped from the user's account. This will NOT remove the domain from Cloudflare's system, and should typically only be used when you're running into specific issues with setting up a domain.