Does removing an iPhone from my icloud account also erase the data? I lost my iPhone 6S recently. I think it fell off my car and was crushed because it has been offline (according to Find My iPhone) ever since. I want to erase the phone and remove it from my iCloud account since the phone is gone.

However, I can't erase the phone until it comes back online. I do have the option to remove the device from my iCloud account. If I remove the phone from my iCloud account, does that also erase the data? The phone has a password on it, will it continue to be locked in case someone finds it after I have removed it from my iCloud account?
The erase command can't be delivered until the device connects to the internet. The same with issuing a passcode lock. 

The device will remain unlocked, unprotected, unearned until such time as it connects to Apple's servers.

That being said, a destroyed phone is unlikely to be unlocked or even work, but there's a chance your data is vulnerable if you cannot assure destruction by locating it and shredding it (or equivalent).