Hi Garry,
There is a thread here which might help:
https://moodle.org/mod/forum/discuss.php?d=313527
Obviously, you should work in the way that suits you best, and in which you feel most comfortable, but I use the testing environment for testing Moodle upgrades and new plugins. I keep new and incomplete materials in a hidden course on the production site.
Good luck on your voyage with the good ship Moodle!
Andy