[LunarBerry]

If it's curly/wavy then it's cotton coat. It's generally described as growing outwards instead of long lol (basically makes them look bigger than they are). Many have a combination, as my girl has straight hair on her head but curly/wavy everywhere else, but even her head hair is fluffy-ish and thick. So she'd still be considered a cotton coat even though her hair is soft (though tangley when long). Her hair also grows very fast X_x
"Silky" hair is very straight and usually more finer, as well as taking a bit longer to grow. Then there are some yorkies that have more of a "wire" or coarse coat. Yours sounds like a cotton coat or at least some combo of cotton/silk.
As for grooming, I usually keep my girl's hair very short in the summer and no more than an inch or so in the winter. But that's just my preference and she is more comfortable that way. Also note, that the longer the hair, the more maintenance it is irregardless of hair type. It will require daily brushing/grooming (sometimes twice a day depending on the hair) and proper washing. I've tried doing the top knot/longer but it didn't work out so well.