How to set up new site BEFORE transferring domain back to GoDaddy?

Hi,

 

I have a domain purchased via my GoDaddy account that is currently pointing to Squarespace. It does not have any GoDaddy hosting associated with it.

 

I'd like to set up a new website for that domain here on GoDaddy and stop using Squarespace. However, since I want to avoid having any downtime on the site, how can I set up hosting for this domain here on GoDaddy and set up a new website for it BEFORE switching the DNS from Squarespace to GoDaddy? Is it possible to associate hosting with the domain without interrupting the current Squarespace site? And if so, does GoDaddy provide some kind of temporary/access domain where I can set up and test the new site before switching the domain's DNS back to GoDaddy?

 

I'm pretty stumped on this so thanks for any help you all can provide. If I explained things poorly or you have any other questions please let me know.