After finding out that slime islands exist, I wanted to make a slime spawner using a little bit of redstone and liquid slime, but before I even attempt this I wanted to know if spawners like that are allowed or if I have to approach it another way.
I'm pretty sure you can but there are other ways to farm it, you could use a MFR spawner, kill them with spikes with reaper and then once you got souls switch to drac. spawner.
Yes, you should be fine. As long as it is within your territory and is not currently occupied by someone.