No. In fact, it is a very bad idea. CHD files are already compressed in such a way that they can access the data quickly without the need for decompressing the whole CHD all at once. If you put a CHD file in a ZIP, MAME will try to extract the giant CHD file from the ZIP into your system's memory, and then will decompress bits and pieces of the extracted CHD out of memory. This is highly inefficient, and really defeats the purpose of the CHD files.
 
No. In fact, it is a very bad idea. CHD files are already compressed in such a way that they can access the data quickly without the need for decompressing the whole CHD all at once. If you put a CHD file in a ZIP, MAME will try to extract the giant CHD file from the ZIP into your system's memory, and then will decompress bits and pieces of the extracted CHD out of memory. This is highly inefficient, and really defeats the purpose of the CHD files.
  
( ! ) Fatal error: Uncaught TypeError: MWExceptionHandler::rollbackMasterChangesAndLog(): Argument #1 ($e) must be of type Exception, Error given, called in /home/mamedev/wiki.mamedev.org/public_html/includes/exception/MWExceptionHandler.php on line 137 and defined in /home/mamedev/wiki.mamedev.org/public_html/includes/exception/MWExceptionHandler.php on line 111
( ! ) TypeError: MWExceptionHandler::rollbackMasterChangesAndLog(): Argument #1 ($e) must be of type Exception, Error given, called in /home/mamedev/wiki.mamedev.org/public_html/includes/exception/MWExceptionHandler.php on line 137 in /home/mamedev/wiki.mamedev.org/public_html/includes/exception/MWExceptionHandler.php on line 111
Call Stack
#TimeMemoryFunctionLocation
10.06502849400MWExceptionHandler::handle( $e = class Error { protected $message = 'Call to undefined function each()'; private $string = ''; protected $code = 0; protected $file = '/home/mamedev/wiki.mamedev.org/public_html/includes/diff/DairikiDiff.php'; protected $line = 436; private array $trace = [0 => [...], 1 => [...], 2 => [...], 3 => [...], 4 => [...], 5 => [...], 6 => [...], 7 => [...], 8 => [...], 9 => [...], 10 => [...], 11 => [...], 12 => [...], 13 => [...], 14 => [...], 15 => [...], 16 => [...], 17 => [...], 18 => [...], 19 => [...], 20 => [...], 21 => [...], 22 => [...]]; private ?Throwable $previous = NULL; public $xdebug_message = '<tr><th align=\'left\' bgcolor=\'#f57900\' colspan="5"><span style=\'background-color: #cc0000; color: #fce94f; font-size: x-large;\'>( ! )</span> Error: Call to undefined function each() in /home/mamedev/wiki.mamedev.org/public_html/includes/diff/DairikiDiff.php on line <i>436</i></th></tr>\n<tr><th align=\'left\' bgcolor=\'#e9b96e\' colspan=\'5\'>Call Stack</th></tr>\n<tr><th align=\'center\' bgcolor=\'#eeeeec\'>#</th><th align=\'left\' bgcolor=\'#eeeeec\'>Time</th><th align=\'left\' bgcolor=\'#eeeeec\'>M' } ).../MWExceptionHandler.php:0
20.06502849432MWExceptionHandler::rollbackMasterChangesAndLog( $e = class Error { protected $message = 'Call to undefined function each()'; private $string = ''; protected $code = 0; protected $file = '/home/mamedev/wiki.mamedev.org/public_html/includes/diff/DairikiDiff.php'; protected $line = 436; private array $trace = [0 => [...], 1 => [...], 2 => [...], 3 => [...], 4 => [...], 5 => [...], 6 => [...], 7 => [...], 8 => [...], 9 => [...], 10 => [...], 11 => [...], 12 => [...], 13 => [...], 14 => [...], 15 => [...], 16 => [...], 17 => [...], 18 => [...], 19 => [...], 20 => [...], 21 => [...], 22 => [...]]; private ?Throwable $previous = NULL; public $xdebug_message = '<tr><th align=\'left\' bgcolor=\'#f57900\' colspan="5"><span style=\'background-color: #cc0000; color: #fce94f; font-size: x-large;\'>( ! )</span> Error: Call to undefined function each() in /home/mamedev/wiki.mamedev.org/public_html/includes/diff/DairikiDiff.php on line <i>436</i></th></tr>\n<tr><th align=\'left\' bgcolor=\'#e9b96e\' colspan=\'5\'>Call Stack</th></tr>\n<tr><th align=\'center\' bgcolor=\'#eeeeec\'>#</th><th align=\'left\' bgcolor=\'#eeeeec\'>Time</th><th align=\'left\' bgcolor=\'#eeeeec\'>M' } ).../MWExceptionHandler.php:137