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I bought the game on Steam. As soon as I sign in on Steam on one computer, Steam signs me out on the other computer. If I duplicate the game in my steam folder and launch it, it quits since I already have another instance of the game running.

One of my motivations for doing this is to level up an alternate character. Creating multiple copies of the program worked very well in WoW some years ago. By duplicating the WoW program, I could launch many copies of the game and then have the alts gain XP in the same game as the main character.

For older borderlands games, the advice is to use a third party program like game ranger for windows. Is there a better way?

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You need 2 separate steam accounts and purchase Borderlands 2 and Borderlands The Pre-Sequal on both steam accounts to be able to play the game on the LAN.

Once you are logged into steam one computer, and try to sign in on another computer, It will automatically sign you out of steam the first computer. You can't be logged in on the same steam account on 2 different computers at once.

Essentially, what you're attempting to do is LAN the game with only 1 copy of the game, that's not going to happen.

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