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No, they take character strings alright. Using your original examples:
D DecField S 5 2
C Eval MyDecField = %Dec( '123.45' : 5 : 2 )
C Eval MyDecField = %Dec( ' 1.23' : 5 : 2 )
C Eval MyDecField = %Dec( '1.23' : 5 : 2 )
C Eval MyDecField = %Dec( '1.2' : 5 : 2 )
C Eval MyDecField = %Dec( '123' : 5 : 2 )
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