It needs to be at least 4GB formatted with a FAT partition. The first step in getting Kali installed is to prep your USB thumb drive. Kali’s website has documentation on this process here.
Rather than run a separate laptop for these applications, I’ve decided to partition my Mac’s hard drive and dual boot OSX and Kali Linux.
Things like running bluetooth sniffers or injecting bluetooth packets with the Ubertooth One on a VM caused USB throughput issues and request timeouts (which I experienced when first setting up my Ubertooth).
I typically do my development or hacking in a Linux virtual machine on my mac (using VMware Fusion), but some applications require a native Linux install to behave nominally.