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Setup New Hosting Server - existing GoDaddy domain to external host, install WP while live

Current situation- GoDaddy domain points to non-GD web host; just got new Econ hosting plan through GD and have yet to set up

 

Desired situation- Setup new GD hosting plan, install WP and build site in background while continuing to direct domain to external host. When WP site is ready to go live, I want to repoint the domain to the WP site on the new host. I don't want to use Managed WP just to get a staging area- is there any way to use a temporary URL to build a WP site on a new server?

The first step of the server setup is which domain should the plan be attached to- will this change my domain settings to repoint to the new server? Or will it allow me to continue to point to the external site?

Is it better just to create the WP site on a subdomain and then when ready to go live, redirect the domain to the subdomain?