Yes, hardening off seedlings in shade is not just fine but the best way to start the whole process. You should keep your seedlings in a shaded spot for the first 2-3 days before giving them any direct sun at all. This lets their leaves adjust to outdoor air, wind, and temps without the added stress of UV rays burning their tender tissue.
I use my covered back porch as a shaded hardening off station every spring. The porch faces north and blocks direct sun while still letting in bright ambient light from all sides. My first year I skipped this step and set trays of pepper starts right in full sun on their first morning outside. Within 3 hours their leaves had white bleached spots that never healed. Now I won't move a single tray past the porch railing until day four of the process and I haven't lost a seedling to sunburn since.
Your indoor seedlings lack the UV-blocking pigments that outdoor plants build up over time. Their leaves also have a very thin wax coating that can't handle intense light yet. Direct sun hits these unprotected leaves like a magnifying glass on paper. Shade gives your plants time to start building those defenses before you ask them to handle full sun. Even 3 days in a shaded spot triggers your plants to start making the protective wax and pigments they need.
Penn State Extension suggests starting with 2-3 hours in a shaded spot on the first day. From there you move your dappled light seedlings into filtered sun under a tree canopy by days three and four. By the middle of the week, shift them to a spot that gets morning sun but stays shaded after noon. This slow climb in light levels matches what your plants can handle at each stage. You're teaching them to process stronger light a little at a time instead of throwing them into the deep end.
The sun exposure transition works best when you pick the right shaded spots around your yard. A covered patio gives you the most control since you can slide trays toward the edge as days pass. The area under a young tree with a thin canopy offers great dappled light for mid-week sessions. A north-facing wall or fence blocks the harsh afternoon sun while still giving your plants bright indirect light all morning. I've tested all three options over the years and the patio wins for ease since you don't have to haul trays across the yard.
Watch your seedlings each day as you move them into brighter spots. Leaves that curl, turn white at the edges, or feel papery got too much sun too fast. Pull them back to more shade for a day and then try again with less time in direct light. This process isn't a race and your plants will tell you when they need a break. Healthy leaves should look green and firm at the end of each outdoor session.
Taking 10 full days instead of rushing through in five gives your plants the strong start they need in your garden. You can always slow down the schedule but you can't undo sun damage once it happens. Start in the shade, trust the process, and your seedlings will reward you with faster growth and stronger stems once they hit the garden bed for good. That patience pays off in healthier plants all season long.
Read the full article: A Full Guide to Harden Off Seedlings