Not the direct impact, but the death explosion when it ends its flight. It deals 12% so it fills two levels. If you like to launch a Lloid to start the match, G&W should be able to snag the explosion by jumping off the stage (though this is slightly risky even with his good recovery because there's 14757929473 frames of lag after you bucket levels one or two).
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Kofu
Indigo Jeans
ohhhh alright. Yeah I didn't think it was the death explosion since Lloid takes forever to die. Is it really worth it though?
Kofu
It also works when Lloid hits a wall or obstacle. Shaya mentioned a Villager/Game & Watch team where Villager plants a tree and launches Lloids into it to fill the bucket. I think this latter phenomenon is why sometimes Lloid has much more knockback than normal; I think it's colliding with hitboxes but I'm not sure (makes me wonder if G&W can use Chef to make it explode and get an easy bucket).
Kofu
The resulting bucket is a OHKO or close to it so it can be worth it if you find good times to get the explosion. But yeah, if he's just standing there trying to bucket it he'll take the 7% damage.