Well, I suggested something similar for Project Eternity, the same functionality can be used here;
* You drop books in the library, and they dissapear out of the inventory.
* Once you want to read a library book, a conversation screen comes up allowing you to pick a book.
* The book chosen gets opened for the PC to read, without even needing to put the physical item back in your inventory.
So yeah, I think the same would work fine here as well