Yes; all internal floppy drives are pretty much backwards compatible back to the original compact Macs, meaning you can create 400K, 800K, and 1.44MB floppies. I am currently using a 1400C as a bridge machine. You can also read this thread for other options: http://68kmla.org/forums/viewtopic.php?f=2&t=22761. Note that external floppies which are not Apple branded will likely not work (e.g. USB floppy drives).
However, you have to be sure to use floppy media that is compatible. Using an HD (i.e. 1.44MB) disc may not work in an 800K drive.