There are two schools of thought on the questions you ask.
My view is that live rock contain many things; Sponges, bacteria, coral and macro algae as well as tonnes of critters that are hiding in the rock. Although not necessary for a fish only set up, a reef tank benefits from LIVE live rock.
There is no point in buying live rock and killing it by cooking it IMO although I fully respect the opinions of those who disagree.
Therefore keep the lights on. Place the live rock so that the coral on the rock is closest to the light. If this coral survives harvesting from the sea, sitting on a dock in the sun and the flight over it will flourish in your tank. If algae starts to become a problem it can be dealt with as long as you do not leave it too long.
I disagree that the critters will die in a cycle. That has not been my experience and I have set up 6 tanks with really live rock. BTW take your time a cherry pick the best live rock. Look for lots of life on it.
You did not mention one important issue. Are you planning to add sand to your tank. If so go for a minimum of 2-3 inches of fine sand. It is harder to add it later.
Remember you should allow your tank to cycle which generally takes about a month before you add any fish. Add one fish per month unless they are really small fish.
The concept of a clean up crew (CUC) is a dated marketing ploy. Simply add a couple of hermit crabs if you like them and ten or so various snails. You can add more delicate stuff later.
Congratulations! You are defineately on the right track.
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