Subdomain cloudflare tunnel to local homeassistant

Regarding the sub-domain setup at Cloudflare:

Yes.

Since you’ve already have a domain name, great!
When you’re creating a cloudflared tunnel, you can add a Public hostname like abc.yourdomain.com (sub-domain) and point it to your local Home Assistant, therefore you’d see yourdomain.com listed is already using Cloudflare (has got the assigned Cloudflare nameservers for your Cloudflare account added at your domain registrar).

I am using this approach for HDL related stuff and controlling a “smart-home” room via Home Assistant from a locally hosted VM (without exposing it online).

A CNAME (partial) setup approach would be possible, if so: