Should work fine.
General recommendation for drive use:
- Catalog on fastest drive, SSD drives for example. Internal or external. LrC performance can take advantage of drive speed for catalog access. Keep in mind an internal drive may be faster than a SSD external drive due to connectivity (USB speed). Must be on a physical hard drive not a server share, not a NAS, not the cloud. The catalog is a SQLite database, the issue is various network shares are not setup for a SQLite database and things go wrong.
- Library preview files on same hard drive as catalog. LrC takes care of that, do not fight that.
- Camera RAW CACHE on fastest drive. LrC performance can be effected in this by drive speed. Does not need to be on same drive as catalog. Needs not be on same drive as photos. On a Windows PC, best if not on same drive as Windows Paging file (typically that paging file is on drive C)
- Photos on any drive. No advantage via drive speed for photo access by LrC. Should be a physical drive, not the cloud. Not an absolute requirement, but eventually things go wrong if on the cloud, on a NAS, on a server share.
- Do not forget to backup the catalog to a different drive. Can be backed up to a server share, a NAS, or cloud. (as well as a normal hard drive) Best if multiple backups.
- Do not forget that the photos are not physically located in the catalog. Do not forget to back them up. Backing up the catalog via LrC does not backup the photos.
One pitfall, on a Windows PC, apparently not a MAC, rarely, the OS sees a external SSD as flash media. LrC will refuse to work with those photos as it will think the drive is a SD or CF, etc memory card. This can be fixed via dive properties. Probably not going to happen. If it works now, then you are good.