Yes. Your LSA profile’s service area can affect where your business appears in Google Maps, because Google uses your service coverage to determine whether your business is relevant to a customer’s location.
If a customer searches for a plumber outside your selected service area, your LSA may be less likely to appear, even if your business is nearby. Expanding your service area can increase reach, but it may also bring longer travel times and less-qualified leads.
Keep your service area focused on locations you can realistically serve. If you change it, monitor lead quality, CPL, booked jobs, and overall visibility to see whether the new coverage is actually helping.