Nook and other android devices are not Android. They're based on AOSP with a bunch of hacks. If these hacks are not incompatible with the 99.99999999999% android devices both buttons, light and other things will work.
Keep in mind that KO is not an android app and thus has some limitations that other android apps don't have. Keep in mind that Nook wasn't intended to be used with 3rd party software too.
If you're still thinking about a mix of nook + KO then yes: you'll need to root your device, install a launcher and the KO package for arm (you can get it from github or fdroid).
Some things could fail for your particular model, firmware version, etc. If its just for running KO please consider a Kobo instead. If you want to run other apps too please consider a device that doesn't need to be rooted and can be returned in the case the new device+fw+sw don't fullfit your needs.
We had a report of other Nooks, Tolinos, Boyues and Onyx working, but YMMV.
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