it really depends on the yarn. Winding it up is mostly the best thing to do. No knots appear, it eases out, things are fine.
some yarns get fuzzy when knitting and ripping them. Those you mostly have to deal with in their fuzzyness.
if it has just been knit (recently) I mostly do not bother much with thinking about straightening it, but I would still rewind it if it is a decent amount of yarn to go through. Just to prevent tangles and be able to move it around and off my couch