Yes, you can set up a website on a subdomain. At the point you would be setting it up on it's own hosting, would it still be a subdomain or would you give it it's own domain. If you plan on giving it it's own domain, it's best practice to set it up that way from the beginning. Otherwise, you would have several changes you would need to make when you make that switch. If you plan on giving the site it's own domain, you could register that domain and create it as an Addon domain in your cPanel. Addon domains allow you to host a completely separate website on the same web hosting account.
Please let us know if you have any additional questions or need further assistance.
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