Updating ATT Lumia 640 from Windows 8.1 to Windows 10

Yes indeed. Windows phones are fully functional without a SIM card, except for being able to make phone calls and text messaging of course.

And I can say from personal experience that the 10586 builds are fantastic on a Lumia 640.
 
I agree, I have the 640XL on 10 and it's quite pleasing. Great mid range phone.