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It doesn’t answer those questions specifically, but I just posted a video about what seed phrases are all about that might be helpful to you as a newcomer. Getting a good grasp on this concept will give you a huge boost in understanding what’s going on during Ledger setup. Basically it’s all of the things I wish someone taught me when I was in your position!
[https://www.youtube.com/watch?v=S3wxjr2Vods](https://www.youtube.com/watch?v=S3wxjr2Vods)
To answer your questions:
1. The words aren’t as random as you think. There are exactly 2048 different words that can come up: [https://github.com/bitcoin/bips/blob/master/bip-0039/english.txt](https://github.com/bitcoin/bips/blob/master/bip-0039/english.txt)
2. Caps doesn’t matter. Fun fact, the word list is actually set up so you only have to write down the first 4 letters of any of the words, and with that you can uniquely identify the rest. If you ever see a steel recovery plate with only 4 letter spaces per word, this is why.
Happy to answer more questions as they come up!