Disable Password on Apple Watch

Please refer to Lock or unlock Apple Watch - Apple Support:

Turn off the passcode

1. Open the Settings app  on your Apple Watch.
2. Tap Passcode, then tap Turn Passcode Off.

You can also open the Apple Watch app on your iPhone, tap My Watch, tap Passcode, then tap Turn Passcode Off.

Note: If you disable your passcode, you can’t use Apple Pay on your Apple Watch.

Yes; go to Settings -> Passcode -> Turn off Passcode.