There are sub-genres of horror. I personally like the psychological or fantastical. Not a fan of the gore fest or jump scare type. For the sub-genres I like, they’re just a slightly different type of fiction that’s thought provoking. You could easily say that Close Encounters of the Third Kind was a horror movie but for the music. Aliens zooming around and abducting people. It’s all about the tonality that the director sets. Or any Indiana Jones movie. Or The Goonies. A slight shift in music, lighting and script and it’s scary instead of fun. My brain is able to sift out these things and enjoy the story. IMO Steven King is a superb fiction writer. He’s known as a ‘horror’ writer but I’ve never taken his books to be that scary.
Watched episode 1 & 2. Not sure where this show is going and I realized that I never watched the remake of IT. Should I for context?
Read the book. It's not like you have much else to do. This is a prequel. 1962, set 27 years before the happenings in IT movie1, which is 27 years before the happenings in IT movie2. Allegedly they're planning to go back another 27 years for season 2...then back another 27 years for the final(?) season...that's as far back as the book goes.