Yes it will.  Data in one of the expired Replays that was deleted from the server or not needed to restore from another Replay will be put back in the free space pool. Data that is still on the server or needed for a Replay will just coalesce into the Replay that requires the data bits or into the oldest Replay (you'll see as typically the largest). When you take a Replay anything in the Active becomes part of the newest Replay and resets Active to 0 until the next block is written.
Until recently I only had 1 Daily Replay on every Volume, which was taken at Midnight and expired 48 Hours later. This seemed to work well for Data Progression.  Now I had added 1 Hour Replays to all volumes which are taken every Hour and expire every 90 Minutes. This is for our Data Replication.  Will Data Progression still work properly? Because my Daily replays shrink a good deal now obviously because the Active Replay is certainly not as full since it was drained the hour previously from the Dailys.   Am I confused? 
Multiple Replays on a Volume--Question