I ask as I cannot find it. Still, it is in Blender 2.61
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$\begingroup$ what modifier are you talking about? some can others can not. $\endgroup$ – David Jun 11 '17 at 22:37
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Yes, for modifiers that don't change the objects topology. For example, the displacement modifier has an option to apply it as a shape key.
Other modifiers such as subdivision surface can not be applied as shape keys, presumably because the vertex count changes. Shape keys cannot interpolate between the two shapes that have different topology.
