Yes, the 8260 needs to be connected to your smart device to receive notifications. Enabling notifications also allows you to receive a low battery alert when your battery is below 10%.
The app will provide green, yellow and red status indicators for tool and battery temperature. The Dremel App also allows you to enable notifications to receive this information.
If the red warning logo illuminates, the notifications section in the app will provide instructions on how to resolve the issues with the tool.