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You may have :-
      Contoller && Neutron Server - Physical box 1
      Compute Node -Physical box 2
For instance ( simple configuration no Swift, no Heat)
   - Controller node: Nova, Keystone, Cinder, Glance, Neutron (using Open vSwitch plugin VLAN or GRE ),Dashboard
   - Compute node: Nova (nova-compute), Neutron (openvswitch-agent)
AIO ( via packstack --alinone (for instance) ) -One physical box.
In general, Controller Node - Box1, Neutron Server Node  - Box2, Compute Node - Box3
    Instead of real boxes you may use ( for instance) 2 VMs running on KVM Hypervisor on Ubuntu or Fedora KVM Servers, using non-default Libvirt's Subnet. Then nested KVM would work for you, but physical box running KVM server should be powerfull enough, otherwise you will get very slow performance.
Nested KVM will show bad performance vs real physical boxes.