There are two types of encryption, one for seed/private keys and the other for Wallet file which is activated by default* since version 2.8.
This is true only for the desktop of version of electrum. When it comes to the mobile version, you have to set a password and the wallet is fully encrypted.
Choosing an easy password is best (if you try to change the password, there is no option to create a new blank password)
If you are talking about the desktop version, it's possible to remove the password by leaving the new password field empty.