It depends. If the lowest point in your plumbing system in the display tank is your overflow, then yes it would drain down to the level of your overflow teeth. If you have return plumbing that extends into the tank deeper than the overflow teeth and you do not have a siphon break hole drilled, your display will drain until the siphon is broken,
Do you have a check valve installed? If not, then anytime you lose power or shut your return pump off the display will drain down until the siphon has been broken. Even if you have a check valve installed, you should test the drain back without it so that you are sure your sump can handle it if the check valve ever fails.