I'd like to partition my third drive (1TB) into two 500 GB partitions -- for
convenience.
Convenience in what respect? Why do you think that's more convenient
or better? It may be better for some people, but not for everyone. And
especially if you already have two other drives, there is likely to be
no good reason to do what you suggest.
Will this reduce the drive performance (having to deal with two
partitions instead of one)?
Yes, because it will result in files on the second partition being
farther from those on the first, thereby increasing head movement time
from one to the other.
However, that loss in performance is likely to be slight that you will
never notice it.
Will the overall useful drive size decrease?
Yes, because there is some space overhead associated with each
partition.
However, that loss in size is tiny, and can readily be ignored
completely.
A couple of others here have answered "No" and "No" to your two
questions. Although there are not literally correct with either
answer, they are close enough to being correct that you can accept
what they tell you.