There four types of licence; Novice, Rookie, Race and Super. You will improve your licence as you gain WLR experience.
All new drivers automatically start with a Novice Licence.
After 10 Events drivers are promoted to Rookie.
A Rookie gains a Race licence after 25 events - but they must also have won ONE Race (or TimeAttack).
Novice/Rookie drivers can also gain an automatic promotion to Race if they win 5 races.
A Super Licence will be awarded to any driver who has competed in at least 60 events and has won at least 8 races.
Some events will only allow entrants who hold a certain type of licence - check the requirements on each competition's front page.