I think I have it figured out but want to review. I can run 4 wire urd direct bury ( not a good choice but can) from remote meter base/ disconnect 200amp. As long as I run some conduit from disconnect to trench and again from trench to conduit through LB and conduit to panel I'm good. I can use urd to panel direct as long as I run in conduit not exposed coming through wall. Use LB's and conduit?

Yes the URD needs to be protected by conduit where exposed above ground. The conduit needs to be fitted with the proper connectors, locknuts, etc where connecting to there meter and panel.

If an LB is needed, then the twist of the wires should be straightened out to help with pulling through the LB.

Will 2" work or I need 2 1/2" big jump in prices.

Not sure, I have no idea what size URD you have. If #4/0 Aluminum, you may need 3 inch.

If it is #4/0, you will find that 2 inch too small, due to the twist of the URD, even thou 2" PVC Sch 40 can handle 5 #4/0 XHHW.