Final answer:
Novels set in gloomy castles with themes of mystery and terror are characteristic of Gothic novels, which blossomed during the Romantic period and are distinct from Romantic, Realistic, or Satirical novels.
Step-by-step explanation:
Novels featuring settings in the past, in gloomy castles surrounded by mystery and terror, are characteristic of Gothic novels. During the Romantic period, there was an interest in the supernatural, the mysterious, and the medieval past. Authors such as Ann Radcliffe created what are referred to as Gothic tales, which include supernatural and dream-like events that take place in abandoned castles with elements like ghosts and vampires. This is distinct from other genres like Romantic novels, which emphasized nature, common people, and the exotic, and from Realistic novels, which focused on contemporary or historical reality with precise details, as well as from Satirical novels which primarily used wit to critique society or politics.