Yes, SETTING is a Scrabble word!

Letter values in Scrabble US: S 1, E 1, T 1, T 1, I 1, N 1, G 2.

Is it a valid word?

SETTING is a valid word in the official Scrabble dictionary (US), the UK Scrabble Dictionary and Words with Friends (ENABLE).

the context and environment in which something is set
the state of the environment in which a situation exists
arrangement of scenery and properties to represent the place where a play or movie is enacted
the set of facts or circumstances that surround a situation or event
the physical position of something
a table service for one person
a mounting consisting of a piece of metal (as in a ring or other jewelry) that holds a gem in place

put into a certain place or abstract location
fix conclusively or authoritatively
decide upon or fix definitely
establish as the highest level or best performance
put into a certain state; cause to be in a certain state
fix in a border
make ready or suitable or equip in advance for a particular purpose or for some use, event, etc
set to a certain position or cause to operate correctly
locate
disappear beyond the horizon
adapt for performance in a different way
put or set (seeds, seedlings, or plants) into the ground
apply or start
become gelatinous
set in type
put into a position that will restore a normal state
insert (a nail or screw below the surface, as into a countersink)
give a fine, sharp edge to a knife or razor
urge to attack someone
estimate
equip with sails or masts
get ready for a particular purpose or event
alter or regulate so as to achieve accuracy or conform to a standard
bear fruit
arrange attractively

Also: mise en scene, stage setting, place setting, set up, gear up, go down, go under, lay out.