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Rookie Question: I just DL'd Office 2016 for Mac. Is it safe to enable AutoUpdates, or will that lead to Microsoft delimiting my application's use?
No. You can still use the application but it will probably check the license with the internet and one day you may wake up with this pop-up: "Microsoft Office cannot verify the license for this product." or something like this. But as far as I know, you will still be able to use the product.

PS: Office can work perfectly without updates ==> you may want to disable them to reduce the consumption of bandwidth, CPU and space.
Disabled they are and disabled they will stay!

Thank you for the helpful advise -- much appreciated.

I did not remember updating my 2011 version, so I just wanted to make sure.

All the best!