OTOH after posting this I know only that I, as group owner, can set mods with no permissions to receive the notifications. But I don’t know if the mod themself can opt to receive the notifications. It’s possible they are selectable by me but not by the mod in their view of their member page. I haven’t tested that yet.
After a bit of basic testing it seems that if a mod has been granted 'Set Moderator Privileges' then they can turn notifications on and off in the Moderator Notifications panel of their membership record. Without 'Set Moderator Privileges' the Moderator Notifications panel doesn't show so they only get what the Owner has set for them.