Yes, Skarlet mentions to Sub-Zero in an intro dialogue that he has the blood of Cryomancers.
But Sub-Zero himself hasn't discovered his true heritage yet in the new timeline. Maybe he will in MK11, now with Frost in the game as well.
He was talking about the spelling mistake. I've seen "Cyro" being used so many times that sometimes I think some people actually believe it's spelled like that.