I am just jumping into this thread, and I wish I had seen it earlier! We did a very similar thing for our goat/sheep shed, and it is working great! Only we used block and stone for the walls, so I am eager to see how well the wood works out. We left the dirt floor, too. We did install drainage of sorts around the bottom outside (several inches of gravel with a perforated pipe).
Our biggest concern was ventilation... and we did end up having to install a fan, even though the front is open (doors) during the day, and there are two small windows on the sides near the front end. But that's also because we lock them up in there at night for safety, so it gets pretty "saturated" during the night.
It stays much more moderate in there, temp wise, warmer in winter and cooler in summer. Your chickens will love it! My husband wants to build an earth shelter home for us!
Lynn