Installing Ubuntu FROM External USB Drive
Ubuntu can be installed from an external USB drive.
There are a few Challenges: Many Live installers such as Etcher, dd, mkusb, Gnome-Disks, Startup Disk Creator, Win32DiskImager, etc, clone the ISO as a ISO9660 partition and overwrite everything on the disk.
Other Live installers such as UNetbootin and YUMI-BIOS/UEFI, (version 0.0.8.1) will install to a partition on the disk, but only to a FAT32 partition They will not overwrite the whole disk like ISO9660 installers will. The maximum size of a FAT32 partition is 32GB on Windows, so most larger drives come as NTFS. A 4GB partition can be created on an external USB drive and Ubuntu Live can be installed to it.
YUMI-BIOS only, (version 2.0.7.9) and Universal USB installer, (version 1.9.9.7), will install to a NTFS partition without overwriting the whole disk or partition. These tools are available free from Pendrivelinux.com.
All of the above installers will overwrite any MBR on the partition being installed to, so we should be careful not to try to install Ubuntu or, any Linux, to a partition with a useful OS on it.