Thank you for your reply.
This was my thought process:
the axes ct' and x' are of frame S', and the axes ct and x are of frame S. I tried to the combine the two frames into one because that was how it was done on the textbook.
R is at rest in frame S', and because the frame S' is moving relative to the frame S, R is moving relative to S at the velocity S' does S.
So R should have a shallow gradient in frame S.
And because R is at rest in the frame S', ct'-axis and R should have the same gradient - as they travel at the same speed according to the observer in frame S.
Now I look at it again after checking your reply and pondering over some time, the proper length, L0 should be a line parallel to the x'-axis because the left end of the rod is at x'=0 and the right end on the starting point of line R.
(I labelled the diagrams to indicate the measured L is in which frame)
The contracted length L is a line parallel to the x-axis (as in frame S) and perpendicular to ct-axis because the measurement of both ends should occur at the same time.
I just realized that another one of you left a reply. Thank you for the explanation and the diagrams. Huge thanks to both of you.