Yes, that is the way we are handling DNS verification for customers whose DNS we do not control. The idea was given to me in this post:
This DNS verification method has been working very well so far. Your nslookup didn't show anything, because the TXT record itself is created during verification by DNS.pm and then it gets removed from the DNS server. This has saved us some back-and-forth with new web hosting customers whose DNS we do not control.