If I have understood your configuration: You have a Fusion Drive (nvme+HDD). In that case you "clone" the Fusion Drive to the new SATA SSD, put that inside the iMac and, using recovery, tell the iMac to boot from the SATA SSD. The internal nvme SSD is then unused.
I trust you are happy about:
1) the "clone" process,
2) opening your iMac and installing the SATA SSD.
If you have any intention of replacing the internal nvme SSD, I would do it right away - avoiding opening the iMac for a second time.
I would avoid any "cloning" and just reinstall macOS and use Migration Assistant to recover from my Time Machine backup. But "cloning" is fine if done correctly.
Have you ruled out alternatives like using an external USB or Thunderbolt drive as your system disk? You could then continue to use the internal disks for data. That is what I would do.