Put it back on Transform so that the overlays disappear?
Yes.
BTW, I forgot something in my previous response (I edited it), you can simply click on the dynamic zoom icon to deactivate the overlay (the effect will still be on the clip). It works the same for all the overlaysBut what if you did create a dynamic zoom for that clip...would you be deleting your dynamic zoom by putting it on Transform?
No, it's just an overlay for this particular tool. You can activate/deactivate the effect from the Inspector, with the little red switch (it's off by default).
How do you know if you created a dynamic zoom for a given clip?
You'll see a zoom effect if you play it
And you'll see the red switch activated on the Inspector too.