Yes, itching is a sign of healing that occurs as a result of mechanical stress on the skin. As a wound heals, the skin cells around it proliferate, growing closer together until they connect and cover the wound.
This process is a mechanical stress, which causes the body to release histamines as a protective function. Special nerves in the skin respond to mechanical stress, sending signals that the skin itches.
In this context, "mechanical" refers to the way the nerve cells are activated. They may also be activated mechanically by exposure to irritating chemicals or a bug crawling on the skin.