As far as cross-references are concerned, there is no impact. The presence of a number range (see the list in Insert>Field>More Fields, Variables tab, Type Number range) in a paragraph identifies it as a ācaptionā.
Therefore, assuming youāre editing your original file, translating the paragraphs, as long as you keep the same number range, the cross-references remain valid.
Personally, Iād rather work with two files: the original one (if possible in read-only mode to avoid modifying it) and a new one where Iās write the translation. This 2-files workflow allows IMHO more versatility and freedom. Of course, there is slightly more work because you must re-insert the fields, but you take more easily into account the differences in language grammar.