No, the (cc in chars)
is merely a boolean that returns True if cc is in chars and False otherwise.
In fact, the code could actually be written
chars = set('AEIOU')
...
if [cc for cc in name[ii] if cc in chars]:
print 'Found'
In that case, if the list has any elements (making it pass the if-clause), that's because some cc is in chars. I'd actually find that to be more readable and straightforward.
Cheers.
EDIT:
To clarify my answer, [cc for cc in name[ii] if cc in chars]
generates a list of all characters in name[ii] that in 'chars' (in that case, vowels). If this list has any elements on it, it'll pass the if-test.
[cc for cc in name[ii] if cc in chars]
says "for each element/character in name[ii], add it only if it's in chars. Check out this answer for clarification.