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I have a computer where there will be multiple accounts - one local and private, other a domain login for work. I have account with Microsoft where I have Office 2016 license, and work account on Office365 with full package. I need to have them both on my laptop unless I can use my 2016 license to activate 365 installation. Them accounts need to be as separate as possible for multiple of reasons, including security.

Is it even possible? I can't, actually, find an answer to that question anywhere (there was one related to Mac, but not W10).

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The Microsoft article Office installed with Click-to-Run and Windows Installer on same computer isn't supported says this :

Click-to-Run is the technology used to install Office 365 subscription and most other Office 2013 and Office 2016 products. Windows Installer technology (MSI) is used to install the volume license editions of Office, like Microsoft Office Professional Plus and Microsoft Office Standard.

Unfortunately, you can't have Office products of the same version (like 2013 or 2016) that use two different installation technologies installed on the same computer. This also applies to standalone applications like Access, Visio, Project, Skype for Business, or OneDrive for Business.

So unfortunately this is impossible unless you install one of the versions in a virtual environment, such as a virtual machine or using Sandboxie. Your problem will then be to use documents in the virtual environment from outside of it.

See also :
Supported scenarios for installing different versions of Office, Visio, and Project on the same computer

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It is impossible. You cannot install both Office 2016 and Office 365 products on the same computer. Also we cannot use Office 2016 license to activate Office 365 installation because they are different applications.

Maybe you can consider to use two computers for two accounts respectively based on security limitation. Alternatively, you can deploy VM machines on current computer and deploy Office 2016 and Office 365 ProPlus as a workaround.

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