Yeah, the more usual wording is "given a free rein", which makes it a little clearer. A monarch isn't given their reign, it's theirs by right (well, with a bit of hand-waving. Or possibly sword-waving, but not since Henry VII).
James II entertained the same delusions as Charles of being absolute monarch. He had a kinder fate, being carefully allowed to escape twice on his journey to France.
Giving 'free rein' comes from the pragmatic practice of allowing a horse to chose the best path over difficult terrain on the grounds that the animal would know better than the rider.