Yes, almost. In fact the value of the parameter is a result-tree-fragment consisting of a document node that owns a text node whose value is "From". For most practical purposes this will behave exactly like passing the string "From", but it's a lot less efficient. It's better to pass the string itself:
<xsl:with-param name="ToOrFrom" select="'From'"/>
Note the nested quotes.
Michael Kay
http://www.saxonica.com/
Author, XSLT Programmer's Reference and XPath 2.0 Programmer's Reference