I moved into my daughter's bedroom when she moved out. It's a tight squeeze since I quilt and make jewelry.
I prefer to close the door and work in peace and quiet, but my husband's office is next to my workspace.
I do handwork while we watch TV. I would suggest you make sure you have good light, both natural aand artificial.
The best part for me is being able to leave the sewing machine and work in progress out all the time, after years of using the dining room. Have fun!