I have been following the CLFS book. I noticed that
there is no lib32 folder. There isn't one in / nor in /usr.
CLFS is written where 32-bit is in "lib" and 64-bit is
placed in lib64. This contrasts with every 64-bit distro I
have ever used. Usually, "lib" is a symlink to "lib64".

I just don't see how this is going to work. How can I get
used to this? More importantly, what am I going to do about
my 64-bit kernel modules? They keep getting dumped in
/lib/modules, a 32-bit folder by CLFS convention. Can I
get the kernel source tree to place them in /lib64? Will
the kernel load them from that location?

In multilib build 32 bit libraries are placed in /lib and /usr/lib. 64bit libraries are placed in /lib64 and /usr/lib64.

For kernel modules they are usually placed in /lib/modules no matter what their arch it is. It just doesn't matters.