What diatonic seventh chords are
Diatonic seventh chords are four-note chords built only from the notes of one key. Start on each scale degree, stack every other note, and each chord gets a root, third, fifth, and seventh.
In a major key, the qualities are major 7 on I and IV, minor 7 on ii, iii, and vi, dominant 7 on V, and half-diminished 7 on vii. In C major, that gives Cmaj7, Dm7, Em7, Fmaj7, G7, Am7, and Bm7b5.