If the grass doesn't get enough water either through rain water or through a sprinkler watering the grass then yes the grass can start to die out if not kept watered enough.
The grass will turn a brown color which means that the grass is dying and usually fertilizing the grass and watering the grass or spreading some new seed on the lawn can help the grass grow again.
During the summer and spring the grass usually comes to life and comes out of being dormant but in the winter and fall the grass leaves die because the grass goes dormant.
Then the grass comes back because the grass hasn't actually died but only went dormant to save energy.