10.7 to 11.0.1 Upgrade

I'm on Windows 8, 64-bit

Before I try an upgrade from 10.7 to 11.0.1, I have a question about my library/files.

I have my library set to an external drive. It's a very large library.

I also have "Organize" unchecked. I organize my own files in folders on a 3TB external drive as such:

Genre > Artist > Album > Songs

My question is: With my current iTunes configuration (files/folders/library), is upgrading safe? I don't want to lose files or folders or suffer any damage.