Time Capsule data is stored in a sparsebundle so the procedure will involve partitioning or resizing the sparsebundle.
No, it won't. A sparsebundle file will automatically expand to accept new data.
The instructions in the support document...... Time Machine: How to transfer backups from a current backup drive to a new backup drive ......assume that your external drives are connected directly to your Mac and they are not "network" drives on a Time Capsule or connected to a Time Capsule.
Transferring sparsebundle files is different.
Connect a powered USB hub to the Time Capsule
Make sure that your "new" drive is formatted correctly in Mac OS Extended Journaled
Connect your "old" drive and the "new" drive to the powered USB hub
Mount both drives on the Mac desktop
Open both drives
Drag the sparsebundle from the "old" drive to the "new" drive.
This is going to take a very long time, since the USB port on a Time Capsule is old and slow USB 2.0 and processor inside the Time Capsule further limits speeds at the USB port to about half of normal USB 2.0.
Rather than copy all the old backups in the old sparsebundle file to a new drive, you might consider simply keeping the old drive around for a month or two until you have built up some backup history on the new drive. Few users ever need to go back more than a few days or maybe a week or so to pick up a file that they may have accidentally deleted on their Mac(s).
Even if you do copy the old backups from the old drive over to the new drive, Time Machine will very likely start a new complete backup of your Mac all over again.....especially if you are running Sierra or High Sierra on your Mac. So, you will likely be using up more space on the new drive than you imagined.
The bottom line.....although I have transferred backups in the past.....my opinion remains that it is not really worth the time and effort involved to do it. But, you may disagree.