Yes it's true but perhaps best explained in this link, I think
click here but here's a condensed version. From the top down the CD consists of a thin protective layer, a metal reflective layer (silver or gold), a photo sensitive dye layer and plastic protective layer. The laser fires its beam at the dye layer and burns a hole in it which then fills in with the metal layer above. This is all very microscopic and happens lots of times when a CD is being written.
Anyway, the link above gives a more comprehensive explanation about a CDs construction and how to look after it.