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Would it be possible to install Windows on a fast usb drive,
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Possible, but not that simple as Microsoft has designed windows so that it will not install on an external USB or other drive. This is because microsoft is selling you a license to use its OS on a single machine. If you try with the standard windows installer you will see a message indicating it will not install to an external device. There is software designed to do this and the page at the link below explains it in detail along with the limitations. Haven't used this software myself so don't know how well it works.
https://www.tomshardware.com/how-to/...indows-11-disk
You should be able to update grub with the external device attache to get a windows entry or simply add an entry to the grub.cfg file.
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but what if I remove this usb drive? Is it possible to make this Windows entry optional?
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If it is not set as the default, it will always be optional as the entry will appear and you select or not select it.