There's no way that the gear oil can reach the outer seal as the inner seal blocks it. It's a strange design. The axle bearing isn't lubricated by the gear oil as in a conventional axle. The axle bearings are packed with grease, just like the front wheel bearings. Rootes specified Shell "Retinax" wheel bearing grease.
All the outer seal does, is prevent wheel bearing grease from getting to the brakes. As long as you don't go crazy with the grease, the groove shouldn't be an issue. I'm willing to bet that most people wouldn't realize that the axle bearings get packed with grease... Considering how hard it is to get the hubs off, I'll also bet it doesn't get done very often! I drilled my axle to accept zerk fittings for the rear axle bearings... something that Rootes did on the Sunbeam Talbot 90 axles.