For waterproofing, just tape the connections.
If you really want to take it apart, you would need to for the purpose of painting the wood, but not for expanding the area of the loop. Once apart for painting, you can assemble it as you wish.
Indoors vs. outdoors: I always opt for outdoors; stronger signals out there.
Shielding is harder, but as you are careful about bunching the wires together, it shouldn't be too difficult to apply sticky metal foil. Just make sure it has a slit in it so a complete circuit is not created around the circumference of the loop (that is, a break in the shield as you follow the direction of the wires).