Yes and no. Dryer softener sheets don't harm the dryer. However, their residue may cause the screen of the lint filter to become partially clogged or the electronic moisture sensor to be coated with residue. If this happens, clean the screen with a little detergent and a soft-bristle brush, wipe off the sensor with a cotton ball and a little rubbing alcohol.
Sometimes the softener sheets get stuck in the lint filter or over the vents on the inside of the dryer, so check to be sure the sheets come out of the dryer with the load of clothes.