Will the gift recipient know I am setting up a gift for them when I enter their email in the gift setup?

No, the person you are gifting the frame to will not receive any notifications regarding the setup of gift contents. The only way they will become aware of it is when you share the gift code and email with them for redeeming the gift content.
You can share this information by accessing the Frame tab in the Nixplay Mobile app menu at the bottom.
Please be aware that once the gift contents are redeemed, you will no longer have access to view the gift code details.