The Easy Theory Book
When you take the theory test, you'll need to choose the correct answer from multiple options based on a picture. An example is road markings: You need to know what they mean, why the road is marked, and how to drive according to the marking. You'll learn things in theory that you'll need when driving. That's why theory lessons alternate with driving lessons, so theory and practice go hand in hand. Your driving instructor should provide you with 'real' instruction, not just in front of a computer - you're entitled to that.
How the teaching is conducted is up to the driving instructor. The instructor plans and uses things that make sense: computer, screen, which tests to perform, and so on. The driving instructor must follow the teaching plan, which you'll also receive. When you drive practically, both on the road and on the maneuvering area, it's done in a safe car, just like during the test.
You'll take the test in a car with manual transmission because you need to demonstrate that you know how to use gears. You don't have to take the test in the car you learned to drive in, but it's often a significant advantage. You cannot take the practical driving test until you have passed the theory test.