Dots that large will need to be done as an external image.
What do you mean by "making the plates"? What "plates"?
When printing on a conventional printing press, some sort of plate is required for each color to transfer the ink to the paper. Since inks are only one color, we use halftones -- grids of spots of various sizes -- to fool the eye into seeing continuous tones and other colors. The size of the "screen" controls both the size of the spots and the number of shades and amount of detail that can be produced.
Without going into a whole lot of detail, each spot is made from a matrix of "printer dots" (an image setter usually has a resolution around 2400 to 3000 dpi), so the finer the screen (more spots per inch) the fewer printer dots are used for each halftone spot and the fewer shades are possible, but smaller spots reproduce detail better, so there are always compromises.
Inkjet printers, and many lasers, as well as some specialty press operations use a different system where all the spots are the same size, but they are varied in how densely packed they are arranged on the page to give the tonal spread.
None of that has a lot to do with answering your question, except to set up the rationale for doing this as an external file. To get real halftone spots that vary from 1/16 to 1/8 inch you would need to be using a halftone screen of less than 8 lpi (since you still want to see spots defined at 1/8 inch, not solid color) and adjust your tones so that they run from something less than 100% to around 50%, which just isn't practical, and it won't work on screen or with most desktop printers, if that's how you plan on making the hard copies.
That leaves the question of whether you want to truly simulate the halftone appearance -- i.e. lighter shades should have smaller spots -- or whether you simply want to apply a gradient fill across a grid of same-sized spots. You could actually draw the spots natively in InDesign, but Illustrator or Photoshop would, I think, make more sense. (In fact, both of those may already have some sort of pattern fill defined that would be suitable)
Peter