Like the title says, we currently have all our layer data being hosted on an on-premises server via a REST service. Data is pulled from a SQL server. Our organization just acquired a grant for ARCGIS online licenses, and we would like to migrate the data off our on-premises instance and into ARC online so we can decommission the server. I am very green with ARCGIS and just looking for some guidance on where to start.
If you are turning off the ArcGIS Server your only option is to host it in ArcGIS Online. There are a few types of services you can publish, but the most common is Hosted Feature Layer:
https://doc.arcgis.com/en/arcgis-online/manage-data/publish-features.htm
If SQL Server + ArcGIS Server is 'user managed', data hosted in ArcGIS Online is 'system-managed'. You won't have direct access to the underlying database. All interactions will be through ArcGIS Online interfaces, apps, or the REST API.