I didn't always use tracing paper for lettering, but once I discovered it there was no turning back. I honestly have no clue how I was able to work without it before! Over the years, I've discovered a few tricks for using it.
I pretty much just use whatever brand is on sale. The first pad I bought was the store brand from Target. Now I'm using Strathmore. They're all basically the same way for what I need, so I'm not picky.
Most tracing paper is sized at 9" x 12" or larger. I rarely use it at that size. I don't draw that big plus it's hard to maneuver such a large piece of paper when I'm tracing over things.
I usually tear or cut a few sheets of paper into quarters; so I halve it and then halve it again. This gives me four separate pieces, each roughly 4.5" by 6". I keep them in my (small) sketchbook so I always have them with me and they're a much more manageable size.
This tip isn't so much about the tracing paper itself, but I do use the material in a very important step in my process. 99% of the things I draw start as small thumbnail sketches. Once I come up with a thumbnail that I like, I scan it (or snap a picture on my phone) to get it onto my computer. There, I adjust the contrast so it's easier to see and blow it up to the size of the final piece. I print that image out and use tracing paper to refine the sketch that is now at the proper size.
I number my sketches so it's easier to keep track of everything. This is another reason to trim the paper to a smaller size. I generally fit one or two sketches on each of those smaller pieces of tracing paper. As I continue to refine my composition, I number each individual sketch along the way. Say the letters were better in sketch #5 but I liked the details I drew in sketch #3. I can combine these with no problem because they're on separate sheets of paper.
Numbering sketches also helps to track my progress. Sometimes if you trace over and over multiple times, things start to look strange. (It's like that kid's game, Telephone: one person whispers a phrase to the person beside them, then by the time it gets through 20 people it has turned into a completely different phrase because there were too many accidental edits along the way.) By numbering my sketches I can pinpoint exactly where things got weird and can start over again from that particular iteration.
After falling in love with tracing paper, one of the biggest hurdles I had to get over was to not be afraid to use it. I was always so scared about wasting paper. But if you really want to make progress and perfect your lettering, don't be shy when it comes to fleshing out your ideas on paper!