Aboslutely not! the only way you are going to improve is by playing more and more!
Is it bad etiquette to play online if you are a below average player?

If you want to win some games, only challenge people whose rating is similar to yours.
If you don't mind losing and learning, accept games against anyone.

The more people playing here, regardless of rating, the better the experience for everyone. Play away.

No way! Play a few games and your rating will settle in to your actual number. Then you can challenge people around your rating. Don't worry so much about your rating. We're not playing for money here. Most play for fun. The more you play, the better you will get with a little bit of reading and study to help. My rating and comfort with the game has improved greatly with play. Play, play, play and then play some more. People get too hung up on rating.
Yes, you probably don't want to challenge people way above you because you will get crushed and that is no fun. But beating someone above you is a great feeling. If you challenge someone and they don't want to play you because your rating is too low they will abort. But I would not have a problem playing someone lower rated. If I beat a player rated far below me, I only gain a single point or two. However, if they beat me, they gain a whole lot of points.

I think most of us are here because we enjoy chess and we enjoy playing chess!!! If you want to play online, go ahead and play. Like everyone said, try and find people to play around your rating level and you should have a pretty good time on here. You won't win every game, but that's not fun either, lol. H.G.
I'm not sure if I should start playing online against other players. I'm pretty sure I'm not even an 1000-1100 player, so would it be bad for me to start playing against others since I fear I would essentially be boosting their ratings? I'd like to start online because I've read that it's much better to learn against real people that just playing against AI and I don't get much of a chance to play in real life.
Well losing is how you learn your mistakes in a chess game.To get better chess you should practice and play harder players.

Is it bad etiquette to play any game anywhere if you're not very good?
NO unless you're a sore loser!!

Just about everyone is blundersome trying to learn chess, hence they are bad from jumpstreet. To suggest that bad players have no place here or at another chess website, is like saying that beginners have no place here or there either. This site was created not only for playing, but the learning experience. You have as much right to be a bad chess player and play here as a good player does.
Good luck in your future games.

No, I would not consider it bad etiquette, not at all. The site is here for people, like you and me, to play chess and have fun.
I used to be just above 400 and there's still competition at that low of a level. Just play people your rating and you'll get better.

Online rating is not very interesting. Use online as an experimental training ground. Some with high ratings lower there max to achieve.Leave high max to challenge yourself to improve.Tournaments Have a certain appeal,they give you that extra motivation.

Check out some high rated players that have played their games, and note their openings, etc. but don't expect your games to equal theirs too soon, it takes hard work and dedication to play within their level. And some people will never reach their stratosphere of play (I won't) but don't worry, stay calm while playing and focus on your oppontient's moves.
But absolutely keep playing and don't expect to win every game. Good luck!
I'm not sure if I should start playing online against other players. I'm pretty sure I'm not even an 1000-1100 player, so would it be bad for me to start playing against others since I fear I would essentially be boosting their ratings? I'd like to start online because I've read that it's much better to learn against real people that just playing against AI and I don't get much of a chance to play in real life.