I presume you mean MB and not GB? On native Atari hardware at least, you could only address up to 1 GB partitions on the very last TOS 4.04 based systems like the Falcon.
Yes. nobody had GB drives in those days. The drive I had on my ST was a 16 MB SCSI drive and the CPU ran at 8 MHz. The IBM XTs that were so popular at the time only had 10 MB hard drives and ran at 4.77 MHz.