[php] Is it possible to have a HTML SELECT/OPTION value as NULL using PHP?

Yes, it is possible. You have to do something like this:

if(isset($_POST['submit']))
{
  $type_id = ($_POST['type_id'] == '' ? "null" : "'".$_POST['type_id']."'");
  $sql = "INSERT INTO `table` (`type_id`) VALUES (".$type_id.")";
}

It checks if the $_POST['type_id'] variable has an empty value. If yes, it assign NULL as a string to it. If not, it assign the value with ' to it for the SQL notation