If you're making this all up, why are you at AskHistorians? We can tell you about the past, but we're not here to give opinions on invented worlds.

I very strongly suggest that rather than trying to work back from 20th C concepts you don't understand, that you start in the 1600s to understand how the navies of 1700 developed.

First - which Royal navy? The French and Spanish had powerful monarchs: their navies were royal, too.

Second, you are capitalizing way too much. Generic nouns like cutter & lieutenant do not take caps. Only cap proper nouns (His Majesty's Ship Reliant) and titles associated with them (Lt. Harvey). If you are going to be an author, I suggest you study Strunk & White on such matters (available free at Project Gutenberg) rather than asking a bunch of historians, not all of whom are fluent in English.

For reading, I suggest the series Conway's History of the Ship at Naval Institute Press. They have absorbed far too much of my discretionary income, because their stuff is good.