The short answer
Yes. Rebuilt or re-downloaded automatically when needed.
What is it?
A cache used by the Android SDK tools, mostly downloaded repository listings and temporary files from SDK Manager operations. It is separate from your emulators, debug keystore and adb keys, which live elsewhere in ~/.android.
What happens if you delete it?
The SDK tools recreate it and download what they need the next time the SDK Manager checks for updates. Nothing else is affected.
How to remove it properly
Quit Android Studio, then move ~/.android/cache (only this subfolder, not the whole .android folder) to the Trash with Finder’s Go › Go to Folder….
Quit the app that uses it, then move it to the Trash. Empty the Trash when you’re sure.
How MoreRoom helps
MoreRoom recognises this item, shows its real size and when it was last used, and labels it “Safe to remove”. In the free version you can move it to the Trash in one click, with Undo; Pro collects every safe item at once.
Frequently asked questions
Is it safe to delete the ~/.android/cache folder?
Yes. Rebuilt or re-downloaded automatically when needed. The SDK tools recreate it and download what they need the next time the SDK Manager checks for updates. Nothing else is affected.
Will Android tools cache come back after I delete it?
Yes. The SDK tools recreate it and download what they need the next time the SDK Manager checks for updates. Nothing else is affected.
How do I remove Android tools cache properly?
Quit Android Studio, then move ~/.android/cache (only this subfolder, not the whole .android folder) to the Trash with Finder’s Go › Go to Folder….