In British nobility (which is different from royalty - royalty means you are in some way

related to the ruling monarch, nobility doesn’t necessarily) there are many different "ranks"
of the peerage.
I have created a quick reference chart (obsessed, remember!), in order of precedence from
least to greatest, assuming the fictional title of "Middleberg."

Title Female Equivalent Addressed as…

Knight/ Baronet Lady (Dame) Sir Hubert and Lady
Middleberg

Baron Baroness Lord and Lady Middleberg

Viscount Viscountess Lord and Lady Middleberg

Earl Countess Lord and Lady Middleberg

Marquess Marchioness Lord and Lady Middleberg

Duke Duchess His Grace, Lord Middleberg

and Her Grace, Lady
Middleberg

(Knight is only conferred upon the holder for their life, Baronet is a hereditary title. Neither are technically of the
peerage)
 ...
There tends to be a lot of confusion over how the addresses (not titles!) “Lord” and “Lady”
are used. When a peer holds a title in his own right he is never addressed as "Lord
FirstName LastName" it is always "FirstName, Lord Title." A famous example of this would
be George Gordon, Lord Byron. In this case, Gordon is the family last name, Byron is the
title of his Barony.
 ...
The only people who might correctly be addressed as Lord/Lady FirstName hold courtesy
titles because of their parents. The younger sons of Dukes and Marquesses are
automatically styled Lord FirstName LastName and the Daughters of Earls, Marquesses, and
Dukes are styled Lady FirstName LastName. So, Robert Perry, younger son of the Earl of
Middleberg would the The Honorable Robert Perry, while Robert Perry younger son of the
Marquess of Middleberg would be Lord Robert Perry (and his wife Lady Robert Perry). Lady
Diana Spencer, for example, was the daughter of Earl Spencer. Often older sons (heirs
apparent) will be given as a courtesy one of the other titles held by the family, but it confers
no privileges. So, Edward Perry, oldest son of the Earl of Middleberg might be styled
Viscount Plainfield until he inherits the Earldom.  
 ...
All of that is to say that there are a lot of titles floating around that are attached to people
who are not actually members of the peerage; they are merely courtesy titles.
 ...
As far as relationship to the Monarchy, that has changed quite a bit over time. The oldest
rank in Great Britain is "Earl." In Anglo-Saxon Great Britain (before the Norman conquest)
the holders of various pieces of land were names Earls (Eaorls). These Earls ruled over their
holdings, collected taxes, raised armies, handed down justice, and generally functioned as
little monarchs in the name of their King. When William the Conqueror arrived in 1066, he
introduced the title of "Baron," granting Baronies to his supporters in the conquest of
England. William scaled back the duties of the Earls and Barons (keeping, for example, the
right to collect taxes for himself), but continued to use them to control and rule at a local
level.
 ...
Within the next few centuries, other titles (most already in use on the Continent) began to
appear. The first Duke created in Great Britain was Edward, The Black Prince (eldest son of
Edward III). Edward was created Duke of Cornwall in 1337. Duke is a title that has
traditionally been associated with the Royal family. Often, younger sons of monarchs who
will not inherit the throne are given Duchies. This type of duke is often known as a "Royal
Duke" these Dukes take precedence over non-Royal Dukes. The first non-royal Duke was
Robert de Vere, created Duke of Ireland for life by King Richard II in 1385. De Vere was
also, interestingly enough, the first Marquess. According to wikipedia, today there are about
28 Dukes, four of which are Royal Dukes. The rank of Viscount first appears in England the
1440s, while Baronetcies were first granted by James I in 1611 as part of an effort to raise
funds for the Monarchy.
 ...
The various ranks of the peerage used to actually come with land and a fair bit of ruling
power over that land (in the feudal way). Earls and major Barons were also often called on
to act as an advisory body or to raise an army for the King.  All throughout the Middle Ages
there was an ongoing struggle between the King and his nobles (mostly Barons) for ultimate
control. It is out of this struggle that we get such important documents as the Magna Carta,
and the beginnings of English common law. Beginning in about 1265, it was also these early
nobles who made up the members of England’s first parliaments, and in 1341, the
separation of parliament into Upper and Lower Houses, effectively gave the nobility a
permanent say in the government of the nation.
 ...
The power of the nobility continued to be in land and government until about the mid- to
late 1800s. It was at this time, with the onset of the Industrial Revolution, that the peerage
began to lose much of their power and wealth, becoming more of a social class than a ruling
one.  However, their influence in government remained strong until the late 1990s, when
the hereditary privilege of a peer to sit in the House of Lords was finally abolished.