I just tried 11.10 on virtualbox and it seems to be fine. Rather than making another partition, transfering files, and then deleting 10.04 to make sure everything's all right, I would like to just upgrade to 11.10. Is it possible?
Not directly; you must first upgrade to 10.10, then 11.04. You can only skip releases when upgrading from LTS to LTS.
To my memory you can upgrade from 10.04 to 11.10, but as psusi suggests, you should upgrade to 10.10 and then 11.04 first for best results.