Yes, it works for qualifying as well. I have used it before and it's okay. I use the driver tracker display far more though. The only downside to these peripheral video feeds is, it becomes the dominant video source replacing the main qualifying/race feed. It doesn't become a split/dual or window within window display. So, if you want to simultaneously watch the qualifying/race footage as well as a specific driver cam, and/or driver tracker, you will need to have multiple windows open to do so... and that has its own challenges. At least that's how 2020 was. They have been promising an overhaul for a while.
If you want to buy the F1 package, you should watch out for their early bird specials that as usually released around this time of year.