I'm still confused about the bits and bytes although I've been searching through the internet. Is that one character of ASCII = 1 bytes = 8 bits? So 8 bits have 256 unique pattern that covered all the ASCII code, what form is it stored in our computer?
And if I typed "Hello" does that mean this consists of 5 bytes?
Yes to everything you wrote. "Bit" is a binary digit: a 0 or a 1. Historically there existed bytes of smaller sizes; now "byte" only ever means "8 bits of information", or a number between 0 and 255.