Yup, that's a great way to do it
if you want an absolute measure of drop. However, measuring the shock eye-to-eye is just as valid, all be it a different measurement. The Hudy way is useless for any of the cars I run in 8th or 10th as the setup sheets posted by the pro's all use the eye-to-eye measurement not absolute down-travel. If I did ever want to copy a setup using absolute down travel figures, the Hudy way is what I'd do.
As I said in my original post
both methods are just fine and will work well. Use which ever you find easiest. Me, the setups I use are all based on eye-to-eye length, I don't have a pair of ride height blocks or (very expensive

) droop blocks. I do have a very good set of verniers, so I choose to use them.