According to AMD you should allow the driver to install in the "Default" location: https://www.amd.com/en/support/kb/faq/rsx-install
So yes you can specify a different location even though AMD doesn't recommend it.
NOTE: Go ahead and install the AMD package on your D: drive and see if you have any problems with your video or GPU card. If you do then you can always uninstall and re-install on your C: drive the "Default" drive.