Hi! I'm a new
dvc owner and this whole using points thing is really confusing.
You'll get the hang of it. 
Can use your points towards
Disney Cruise line?
Yes.
How does it work? Is it like reserving at a DVC resort?
As mentioned, start with MS.
Any help would be highly appreciated!
As you may soon hear ad nauseum, using your points for a Disney cruise isn't the best use of your points from a financial standpoint. Points required for cruises are extremely high, and many experienced DVCers will tell you that it is smarter to rent your points and use the cash to pay for part (or in some instances, most) of your cruise. Keep in mind, that there is a $95 fee to make said reservations, as well, and should you cancel your cruise ressie made with points, there are some restrictions to how and when you can use those particular points. However, many have used points for cruises and been completely satisfied. They are your points, and you can do what you want with them.