1. Yes, but never do this when the server is on and the drive state is NOT failed. If you replace one non-failed drive it should be done with the power off. Doing this will NOT give you extra storage space until you replace all of the drives with ones of larger capacity.
Turn off the server, replace one drive with one of larger capacity, boot the server and wait for the Array to rebuild. Repeat until all drives are replaced with larger drives, or just make a good backup, power down the server, erase the array, replace all of the drives with larger ones, restore from backup.
2. You can create a online spare when you create an array or when you add an extra drive that's not part of an array.
Always read the manual for your specific SMART Array Controller, as different models have different capabilities.