Yes. In fact, the famous ultra-orthodox traditional paella that Valencians stick to has rabbit. But many other variants do as well. In my family we often eat a simpler version from Murcia with no chicken, but more rabbit, called just "rice with rabbit", and IMHO it's even better (https://okdiario.com/recetas/arroz-conejo-murcia-2538513). The best rice you can have without seafood in it :) And I've always liked fishing for the rabbit's liver.

At one of my ancestral villages in Galicia, rabbit empanada is also a thing, and tastes amazing. But it's seen less and less often because it's messy to eat (it's cooked with bones so you have to open the empanada, remove the bones and close it again) so people tend to use fillings without that problem now. (You can cook it without the bones, there are also areas where they do that, but in that specific area they shun that variant).

Rabbits are mainly native to the Iberian Peninsula.