Yeah, if the folks looking at the library have access to the repo, just keeping markdown files in the repo is a good way to manage docs for high-level usage and code snippet examples. And depending on how big the library is, throwing everything into the README is also not a bad way to go. Though do be aware if it’s an Android library, that the default Markdown viewer in Android Studio doesn’t show Markdown previews (though Markdown is very readable even without previews). IntelliJ IDEA does support previews (at least Ultimate, I’m not sure about CE).
If you publish sources jars, then the KDoc comments written in the source code will be available in IJ for free and show up in code completion popups, and when navigating through code, without needing to generate and host a static site.