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Those work exactly like copying files to memory cards etc, just bigger.
I'm not exactly sure if you can create a download directory on an external HDD but you should be able to copy the game files on it.
Also you .ini will most likely reset on each computer so you need to tweak those again if you do (Games like Fallout New Vegas need some user end fixing for things)
Also make sure that the drive is connected to the computer before steam is started so it will find the library.
The issue may be if you update a games on one computer then use the drive on another. I do not know if the other computer will register the upgrade.
In general, not recommended but you can certainly give it a go.
Like you said, "give it a go" and see what happens. Make sure to back everything in steam up first. There seems to be no clear answer. Thanks.