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Can't you just remove your documents folder from the OneDrive folder?
This will basically "not backup" your documents folder but every other OneDrive part can be used.
Or maybe use some kind of Symlink (Windows: Search for mklink) to connect your live folder to another folder outside of OneDrive. Not sure if this works with ESO but I think I heard that it will (e.g. users mklink-ing their folders so they can play with different accounts at the same time -> 2x eso started but each eso is accessing another directory instead of the same SavedVariables folder.
Edit:
I guess that is what Rhyono meant with "There isn't any simple way to do it" :-p
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