It does. I can download more episodes but, can't figure out how to put them back!
What do you mean, "put them back"? There is no such thing. Your purchased items will always be readily available in the cloud just in case you want to download/view them another time after you've removed them from your device(s). Having said that, if you simply want to remove the episodes from your device, follow the below instructions:
1. Go to the Videos App.
2. Tap the TV Shows tab.
3. Tap the Edit button in the upper right corner.
4. Tap the X on the TV show icons to delete the shows.