Well first off, welcome! You've taken your first steps into a better place.
There's literally hundreds of ways you can go with the suspension. What you're talking about is usually just called a spring over conversion (sometimes shortened to SOA for spring over axle). The name says it all, you're taking the axle and putting it under the spring, instead of over it like it is stock. This is a good way to get 3"-4" of lift really cheap, as you're using mostly stock parts, but it requires a lot of fabricating/welding/etc and it messes up the geometry, so if you go that route make sure you're correcting driveshaft angles, steering, etc. The YJ part of the name just means you're using YJ springs instead of CJ springs. They're a little longer and a little wider.
I don't like body lifts at all myself, I prefer just using a larger suspension lift, but if you absolutely must go that way I'd say 1" should be as big as you go. Any higher and you're making yourself top-heavy without adding any flex. A taller suspension lift will give you the tire clearance you want as well as the longer suspension travel. But that's just my $0.02, keep it or spend it.
To run 33's you're going to want about 4" of lift, there are kits out there that will replace the entire spring/shock (may as well if you're going that high), or there are options out there to add a leaf to your springs, but I think that only goes up to 2". May as well replace the whole thing if you're doing it at all, I'd think, but it's up to you.
Sorry about the lecture!