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The truffle npc will show up in hardmode I think, you can check on of the terraria wikis for more info. The main reason to build a mushroom biome deep underground is that if it is far enough down and you get far enough into hardmode it will spawn truffle worms which you catch to spawn duke fishron. If this is just your second playthrough that isn't something you need to really bother with.
If you do activate hardmode at any point, be aware that it will eventually kill off the mushroom biome, so it is worth building a wall around it. I use grey stone four blocks thick for mine.
When the theme and background changes you have a mushroom biome. Congratulations! (The theme should be similar to the the one you hear in underground mushroom biomes.)
Now that you have a Mushroom Biome, You'll want to make a house for your new resident. For this part, just make a house on the mushroom biome. I made one out of Glowing Mushrooms and Mushroom themed furniture, though you may be able to use other materials. When you're making this house, try and make sure your Truffle NPC is as safe as possible from invasions, as enemies can, and often will spawn in mushroom biomes. Luckily, the presence of NPCs decreases the odds of them spawning.
TL;DR: Dig one Trench. 120 or 200 blocks long, a few blocks deep. More if you feel like. Fill it with Mud. Then spread the mushroom grass seeds. Wait for the Biome to grow. Got the biome? Make a mushroom house. If not, expand the trench and fill it. Wait for the biome to expand. Got the biome? Make a house for your truffle. When the truffle moves in, you win.
Hopefully that helps. If not, just ask, and I can clarify on some of this a bit more.
Before you start, do remember that the Corruption biome can actually convert the mud used in your artificial biome into dirt blocks when in Hardmode. Whether or not this will actually change your biome, I do not know. (I made mine in the upper levels of my town and suspended it via wood blocks.)
EDIT: Corrected some errors.
Plain dirt works, as long as there's no grass close enough to start growing on it.
edit: to make a mushroom biome for the Truffle guy, it's enough that you just have a bunch of mushroom grass blocks in one spot. You could even make a mushroom house out of mud and just plant the mushroom grass on it and it will eventually turn that into a mushroom biome (as long as there's enough blocks... I think you need at least 50? Not really sure on that).