Reinstall system advise lxd

hi all,

I will reinstall my system and have the following in mind. I will install Debian on btrfs filesystem. then i will create a btrfs subvolume and create storage for lxd on this. (also btrfs)

Is this the correct way to do this. now i am using loopback and i want to get rid of this.

Yep, that works just fine and will avoid the space and performance issues of a loop device.