Reading Spikes of Voltages of -/+50V from other source.

Would this work whether or not the Arduino had a common ground?

Unless you use an isolator ( optical isolators are most the usual type ) you need a common ground between the Arduino and your voltage source.

(IE, if it's powered by battery, or via transformer

That is not what a common ground means, those conditions are nothing to do with a common ground or not.