To answer your question, I think a better understanding of angels, in general, would help.
Real angels aren't the pretty lady or fat baby that has been popularized in art. They are spiritual entities of immense power who carry out God's work. An angel, instead of small, is a 'being' that would hold the Earth in it's "hand". It can cause natural disasters, kill, heal, and help.
Take Michael (מִיכָאֵל), a name that means "who is like God". If Michael, the strongest of God's Angel's is as powerful as he with power like God, then he is a powerful force is God's host of Angels. Yet, at the same time, his name is as a question, "who is like God?". Because, of course even Michael pales next to God Himself.
Angels obviously have taken human form previously, and demons are fallen angels. Therefore, to your question, yes it can happen.
Also, looking at demons in this way, it can help bring some perspective. Demons aren't little horned men with pitchforks. They are angels who've lived since before creation, and do not have the heart of God within them.