is it good to do sharding on single machine/server, if size of mongodb documents is above 10GB, will it perform well?
The key rule of sharding is don't shard until you absolutely have to. If you're not having problems with performance now don't need to shard. Choosing sharding keys can be a difficult process to make your data gets balanced correctly between shards. Sharding the database can add severe overhead to your deployment that can take a lot to manage since you will need additional mongod process, config servers, and replica sets in order for it to be stable for production.
I'm assuming you mean your collections are 10GB. Depending on the size of your machine a 10GB collection is not a lot for mongo to handle. IF you're having performance issue with queries my first step would be to go through your mongo log and see if there are any queries you can add indexes for.