Recently, I have installed Twilight on my Android phone. Apparently is adds a color tone effect on the screen. Here are two screen shots taken from PlayStore.
Now my question is that is there a way to develop similar system display tone color set up application in iOS?
Yes, it is certainly possible and I use an app that does this.
Have a look at https://github.com/anthonya1999/GoodNight, It's even open sourced.
However an app like this will most likely be denied from the App Store, but never the less it is possible.