Yes, denote is in the scrabble dictionary

...and is worth 8 points by itself.

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Denote Definition

verb-transitive

To mark; indicate: a frown that denoted increasing impatience.
from The American Heritage Dictionary of the English Language, 4th Edition
To serve as a symbol or name for the meaning of; signify: A flashing yellow light denotes caution.
from The American Heritage Dictionary of the English Language, 4th Edition
To signify directly; refer to specifically.
from The American Heritage Dictionary of the English Language, 4th Edition

verb

To serve as an indication of .
from Free Scrabble Dictionary
To serve as an arbitrary mark for .
from Free Scrabble Dictionary
To make known .
from Free Scrabble Dictionary
To serve as a linguistic expression of the notion of .
from Free Scrabble Dictionary
To stand for .
from Free Scrabble Dictionary

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Top Words by points

Points

denote

7

2 letter words with DENOTE

Points

do

3

no

2

ne

2

de

3

od

3

et

2

to

2

te

2

en

2

ed

3

on

2

oe

2

3 letter words with DENOTE

Points

nod

4

not

3

ode

4

one

3

ted

4

tee

3

ten

3

tod

4

toe

3

ton

3

nee

3

eon

3

end

4

dee

4

den

4

doe

4

don

4

net

3

dot

4

4 letter words with DENOTE

Points

dene

5

tone

4

toed

5

tend

5

teen

4

teed

5

deet

5

dent

5

done

5

dote

5

note

4

node

5

need

5

5 letter words with DENOTE

Points

donee

6

noted

6

toned

6

6 letter words with DENOTE

Points

denote

7

Found 48 words in 0.19485 seconds