This is permitted. It is not permitted to point the target of the CNAME to the CA, but other than that, it’s allowed.
The more interesting example of this is Amazon Certificate Manager’s example of this, at
Customers create a CNAME pointing to an Amazon domain in order to authorize certificate issuance, even when they do not host their DNS with Amazon. This is an example of a borderline situation, as it would appear the CA is doing the authorization, which the BRs prohibit. However, this works today because Amazon has, for whatever reason (perhaps due to serial misissuances from their own operations), chosen DigiCert to operate a subordinate CA, with Amazon effectively acting as a Super-Root - with DigiCert issuing virtually all ACM certs.
Organizational shell games aside, this particular method has been discussed for years in the CA/Browser Forum, and reflects one of the unsettled open philosophical questions: is the role of the CA that of request authorization (requiring distinct requests for every certificate/key) or domain authorization (validating domains, and allowing unlimited keys to be associated)?
There are clear security benefits to being request/key oriented, but the current allowances for domain validation reuse make it clear the BRs are presently domain authorization. Under today’s model, it’s entirely opaque when a CA may be reusing a cached authorization, and despite mechanisms like CAA, there still aren’t sufficient controls for domain holders, as shown by attacks like BygoneSSL. Techniques like this may prove useful for finding the right balance to reducing, or entirely eliminating, domain validation reuse, requiring persistent validation for every issuance, but allowing the domain holder the flexibility and control to durably delegate this.
Certainly, in the realm where it’s the site operator involved, and the CA is not at all involved in the chain, it’s more cut and dry: it’s presently permitted.
(With a Google hat) That’s not to say there aren’t security risks involved in this space, which Google has privately flagged to CAs on the CA/B Forum members only management list to draw attention to these risks and expected mitigations in the interim, but we’re working to address these long-term.