Just set it up with a second SSID and run it on the same network. Doesn't need any special settings. Set them up for different channels so they don't interfere with each other. You can possibly even set them to the same SSID etc and almost roam between them (not quite that simple).
Was there a requirement to keep the networks separate at all?
If it were me, I'd do the following to the second router:
1- assign it an IP address outside DHCP of the primary router
2- disable DHCP
3- as you said, give it its own SSID on a different channel (or set both routers to auto for the channel and they'll figure it out)
4- run the ethernet cable from a LAN port of the primary router to a LAN port of the secondary router.
Step 3 is why I suggest Unifi equipment. Use two of those and they'll work out everything else and give you actual roaming capabilities. I believe DD-WRT
might have added some seamless handoff stuff recently, but the Unifi equipment is so much easier to install and maintain, and is designed for the kind of mounting that's required here.
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