All your settings will be kept. You don't need to uninstall first, just so you know, but it won't hurt anything in case you do.
I'd recommend installing the latest component through the Joomla installer and then either re-install any plugins or modules you're using through the installer or the update manager.
We're very excited that the v5.1 release will have a unified installer and be much easier to manage.
I hope that helps, but if you need anything else, just let me know.
Thanks,
Alex