yes it will settle. i suggest puragin. its a wonderful product. add small bag (8$) from petsmart to your filter system. it will pick up the small fine particles that is making that cloudy water. make that stuff fly up and into the filter system and let puragin pull it out. you can also addd panty hose, great fine filter. put a few inches over each power head, so the water is blown through the pantyhose. rubber bands should hold it.
the stuff will only be removed if you filter it out. turn everything on and let it run. really a week with puragin and you should be set. i know i endorse puragin all the time but that is because it is a miracle product. good luck.
in the future you can cure limestone in a bucket that is acidic, it should help dislodge\disolve the dust. good luck.