It should be the same as installing a spinning disk, just stick it in and format with HDSC setup (You may need the patched version, although the scsi2sd had a option to report as a drive supported by HDSC setup one or two people have found this doesn't always work)

The only thing you really pay attention to is that 68k's have a 2GB limit for partitions (There is nothing to stop you having multiple 2GB partitions though)

Your other option is using a modern server SCSI hdd with a appropriate adapter (However these drives can run a little hot as they are typically 10 or 15k rpm drives)