Locations for external librariesΒΆ
The default install directory could be misleadingly listed as
/usr/lib/modules, but this actually points to
~/snap/steam/common/.local/share/steam.
You can verify the actual install directory by opening the Steam client and navigating to Settings > Storage.
Note the full path listed above the storage space indicator:

You can add external storage libraries as you normally would through Steam
Settings > Storage, but the snap is restricted to libraries located in ~,
/media, /run/media, or /mnt.
This same restriction applies to adding non-Steam games.