If I have a domain from namecheap, and an email address with that domain, can I transfer it to something solid like outlook or gmail? My idea of how email works is really fuzzy.
Yes you can. You'll need to:
- Setup the account with the new provider (note: that most providers including I believe outlook and gmail will charge a monthly fee for using a custom domain). I recommend Fastmail.
- "Add the domain" with the provider (which will mean they're expecting mail from it on their end
- Update a bunch of DNS records to point to your new provider. This will include MX records as well as things like DKIM and SPF. The provider will likely tell you what you need to set in as part of the previous step.
I'd recommend having a look at Fastmail as well.
You can use any email client you like.
2) sign up with that service and input the domain name, do the rest of the configuration.
There is a huge blurry overlap between domain registrar and hosting services these days. It sounds like you are using Namecheap for both. I would highly recommend using domain registrars as ONLY domain registrars and having other things hosted elsewhere.