I know on a Windows encrypted drive, any software on that system is able to access the data off of it since Windows is the one that is decrypting the data as you go. It may slow down editing many layers, but I'm not sure about how much. I just know that it should work fine on Windows encrypted disks. I haven't worked with any other software disk encryption, but it should be the same. I did say "should". Since there is a large number of options. You haven't stated what encryption you are looking at.