Yes, it will track straight up - direction of travel - and the screen will spin around as you turn keeping track up.
Go to the Volvo XC90 Electronic Manual - Go to "NAVIGATION" - Go to "Common navigation system features", read down to "Where am I", page 437 on my electronic copy - go to next page and read "Direction at the top of the map/North at the top of the map"
ALSO:
In the navigation system's normal view, press the thumb wheel/OK/MENU and select SettingsMap optionsMap type.
2
Select how the map is to be displayed on the screen:
North up: the map will always have north at the top of the screen. The "vehicle" symbol will move in the current direction on the screen.
Map heading up: the "vehicle" symbol will be at the center of the map and will always point upward. The map will rotate under the symbol, depending on the direction of the road.
3D map basic: the map will be displayed at an angle from above and the "vehicle" symbol will be at the center of the map and will always point upward.
3D map enhanced: the same as 3D map basic but with objects such as buildings, etc. displayed on the map.
Hope this helps - reply back if it doesn't.