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So as I understand it, if I want my firey, chaotic species to look just that: firey and chaotic but not demonic, I take it I can edit the appearance to keep them looking wild and unkempt, but not evil?
No, transformations are permanent when cast on a Race. The Appearance editing is what we showed last week in the Hero Dev Diary. At any point in the game can you adjust the base appearance of your Ruler or Heroes, this does not have the ability to remove Enchantment or Transformation visuals.
I have question about random races. How they will look? Everything will be random, or they will have something like connection between skills, books etc. ?
Randomly Generated Races do not particularly follow any designs. They only restriction they have is the limitation on Form Traits, in that those cannot be randomised.
A Transformation is a research skill like any other, so you still have to research it, prepare the casting and then cast it on the race of your choice before it's active.