No.
Butterflies and Moths lay eggs.
These eggs hatch out into caterpillars which eat plany material and grow. Once they are full size, the caterpillars make a cocoon/chrysalis then this cocoon/chrysalis hatches out into a new butterfly or moth.
To be more clear, butterfly caterpillars do not make a cocoon; they pupate (transform into a chrysalis) which then hatches into the butterfly
However, some moth caterpillers also spin a cocoon round themselves (made of silk) before pupating.
Before pupating the caterpiller will normally move off its food source to find somewhere safe and hidden to pupate.
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