Death is handled quite frequently in literature, but more so as a subject than a theme. The theme occurs when characters reflect on their own impending death or when other characters in the book deal with their grief.
Some books treat the subject with high sentiment and drama, like Harriet Beecher Stowe's Uncle Tom's Cabin.
Other books are more philosophical about it, exploring its intricacies and possibilities for reflection about life; an example is Willa Cather's Death Comes for the Archbishop, My Antonia, and O Pioneers.
Some books treat the subject with much bitterness and regret, like Edith Wharton's Ethan Frome.
Still others treat the subject of death as a way of reminding the living characters (and, in effect, the reader) to live life to the fullest and not to waste individual moments; an example is the popular books Tuesdays with Morrie and The Five People You Meet in Heaven by Mitch Albom.
There are also books that deal with death satirically, like Faulkner's As I Lay Dying.