This article explains the requirements and how to do it.
You have a wide range of options for external HDDs on the Xbox One.
Faster read speeds and higher capacity cost more, of course.

Seagate External Hard Drive.Seagate
Solid-state drives can offer the best performance but cost more.
you’re able to get a decent 5400rpm 1TB external USB 3.0 HDD for around $60.
How to Use an External HDD with Xbox One
Using an external HDD is surprisingly simple.
They are USB-powered, so no need to plug them into an A/C outlet or anything.
Opt for a 7200rpm external drive or a solid-state drive, and games can load even quicker.
We’re talkingmanyseconds of faster load times.
Do You Really Need an External HDD?
An external drive can save you time and trouble.