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There is a line of thinking that exercising on an empty stomach first thing in the morning will burn more fat, but one recent study suggests this difference is marginal. https://www.nytimes.com/2006/04/04/health/04real.html As with most things diet related, you need to figure out what works best for you. Good luck!
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You can absolutely enter this as cardio exercise. Just estimate the number of calories you burned and log it. For example, I log yard work at 442 cals/hour.
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Having a deficit is really fine - if you're not actually hungry, don't eat.