Yes, that is also doable. Here is a similar setup, but in this case the SecondaryTable is not a view of the MasterTable (but you could do it that way).
I used the names Type1 and Type2 for the “type” columns to avoid confusion in this explanation. First, I made the Type2 column a Select List formatted column of the Type1 column in the MasterTable. This is ensure only types from the Master can be selected. To do that, I used the following formula:
Then, in the SecondaryItem column, I also formatted it as Select List, and used this formula:
Now the selectable options are only ones of the specified type, like so:
