Sure you can run this on a single server (VM ) and move this between the hyper-v nodes.
for doing this in a cluster you need to do the following steps.
Add cluster Resource ISCSI target , fill in the netbios name that you want for the iscsi target
give the target a disk that will hold the VHD files
Now that the cluster resource is created the iscsi target is ready to use.
There is no option in the cluster to start the iscsi target you have to start this in the server manager
As here you can create a new VHD file and use this for targeting , I have no groups so this needs to be created first. I use a small disk just for testing.
for creating the disk you can choose mb , gb , TB disk size.
I Create a new iscsi target and a name
just as in windows 2008r2 these options are the same , targeting on ip , name etc.
this is the IP of the server that will use the ISCSI target
Ready to us the ISCSI targets
Mount it to the server and the target is high available