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No issues at all, when you put a game on a SSD it will load a lot faster, putting it on a regular HDD won't restrict you in any (other) way.
Personally, I'd Install OS + Programs on SSD. Create a game library on your HDD and make it your default library. While the unpacking and installation will be faster on your SSD you don't have much space and would likely need to keep moving stuff from C: to D: all the time. Games you play alot and/or games that will benefit the most use Steams Move Folder to transfer those games onto your SSD. This way those games get the best performance.
To move a games install folder
Library > Right click Game > Properties > Local Files > Move Install Folder
As a general rule of thumb, you'd ALWAYS want to install your OS on your SDD.
Faster boot times is something you'd want.