Can I use my license on a site in development or pre-production?

Yes and without any additional cost.

You can use your license on sites in development without needing to increase the number of sites in your license.
By default, some subdomains and TLDs are managed like .local .dev dev. localhost,, etc ... 
If you have a particular domain/subdomain configuration, send us a contact, the sites will be added to your license for free.