Let me start saying that a similar question can be stated for general locally Noetherian Grothendieck categories but I state it for categories of rings as it is simpler. So we fix a right Noetherian ring (non-commutative) and we let $Mod(R)$ be the category of right $R$-modules.

Recall the following theorem due to H. Krause (for its proof Brown's representability is used).

Theorem 1. Let $\mathcal T$ be a triangulated category with small coproducts which is well generated. Let $H : \mathcal T \to \mathcal A$ be a cohomological functor into an abelian category $\mathcal A$ which has small coproducts and exact $\alpha$-filtered colimits for some regular cardinal $\alpha$. Suppose also that $H$ preserves small coproducts. Then there exists an exact localization functor $L:\mathcal T \to\mathcal T$ such that for each object $X$ we have $LX=0$ if and only if $H(X[n])=0$ for all $n \in \mathbb Z$.

Fix now a hereditary torsion theory $\tau$ on $Mod(R)$. We go on defining in three steps an exact localization functor of the derived category $L_\tau:{ D}(R)\to { D}(R)$.

(1) Denote by $$H^n:{\bf D}(R)\to Mod (R)$$ the usual $n$-th cohomology, for every $n\in\mathbb Z$. It is clear that each $H^n(-)$ is cohomological and preserves coproducts.

(2) Fix a hereditary torsion theory $\tau$ on $Mod(R)$. The $\tau$-localization functor $$Q_\tau:Mod(R)\to \mathcal A_\tau=Mod(R)/\mathcal T_{\tau} ,$$ where $\mathcal T_{\tau}$ is the hereditary torsion class associated to $\tau$, is exact and preserves coproducts. Furthermore, $\mathcal A_\tau$ is a Grothendieck category and so it has small coproducts and exact colimits.

(3) For every $n\in\mathbb Z$ denote by $$H_\tau^n:{\bf D}(R)\to \mathcal A_\tau$$ the composition of the above two functors, that is $H_\tau^n(-)=Q_\tau H^n(-)$. By (1) and (2) one can easily derive that $H_\tau^n(-)$ is cohomological and preserves coproducts.

Now we have all the instruments to construct the localization functor $L_\tau(-)$:

Corollary. Let $\tau$ be a hereditary torsion theory on $Mod(R)$. Then there exists an exact localization functor $L_\tau:{\bf D}(R)\to {\bf D}(R)$ such that $L_\tau(X)=0$ if and only if the $n$-th cohomology of $X$ is $\tau$-torsion for every $n\in\mathbb Z$.

Proof. Consider the functor $\prod_{n\in\mathbb Z}H^n_\tau:{\bf D}(R)\to \prod_{n\in\mathbb Z}\mathcal A_\tau$. By the above discussion, this functor is a cohomological functor preserving coproducts from ${\bf D}(R)$ to a bicomplete abelian category with exact colimits. Let $X\in {\bf D}(R)$, then $\prod_{n\in\mathbb Z}H^n_\tau(X)=0$ if and only if $H_\tau^n(X)=0$ for every $n\in\mathbb Z$, if and only if $Q_\tau H^n(X)=0$ for every $n\in\mathbb Z$. This is equivalent to say that all the cohomologies of $X$ are in the kernel of $Q_\tau(-)$ that is, they are $\tau$-torsion. Now, to prove the existence of $L_\tau(-)$ it is enough to apply Theorem 1.

Question. In the above notation, is it possible to prove that for a given object $X\in{\bf D}(R)$, $L_\tau(X)$ belongs to the smallest localizing subcategory of ${\bf D}(R)$ containing $X$?

In the commutative case one can prove it for torsion theories which correspond to Ore localizations. This can be done using some very explicit construction of the localization, which is internal to the category of modules. In the non-commutative case this cannot be done as the module of quotients with respect to an Ore set is constructed first as an Abelian group and then endowed again with a module structure (over the localized ring). This kind of construction is very difficult (for me) to control in the derived category.