How would I do this?
Connect an Ethernet cable from one of the LAN <--> ports on the FIOS router to the WAN "O" port on the Time Capsule, and leave it permanently connected.
Use the setup wizard on your Mac or an iPhone or iPad to set up the AirPort to create a new wireless network....a setting that the wizard will automatically suggest for you. Just follow the prompts to assign a name for the wireless network, a device name for the AirPort Extreme and setup a password that will be used for both the device and wireless network.
I know I would have to turn off the FIOS router
This is not really necessary unless you only want to to use the wireless network from the AirPort Extreme and not use the FIOS signal at all. FIOS support can tell you how to turn off the wireless on the FIOS router if you decide that you want to do that.
I want to use the higher ac speed for the wireless connection.
A few notes here.....
Using "ac" will not improve your Internet connection speed, since your Internet connection speed is determined by your Internet connection plan with FIOS. If you are looking for a faster Internet connection, then you will need to check with FIOS on the availability of a faster Internet connection plan. In other words, if your current plan with FIOS is for 50 Mbps, then the AirPort will deliver up to a 50 Mbps Internet connection, but no higher.
In order to realize the benefits of the "ac" signal from the AirPort, you will need to have a newer Mac, iPad Air or iPhone 6 that is capable of handling "ac" wireless.
"ac" signals are weaker than normal wireless signals, so best results with "ac" will be when a wireless device is in close proximity to the AirPort, or it has close to a line-of-sight relationship with the AirPort.
Having the AirPort out in the open in a good location should help improve the range of the network, and likely will improve the signal speed over your current connection, since probably 25% of the signal from the FIOS router is likely never getting out of the closet.