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I have a 1998 expedition 4X4, how much oil does the transfer case hold? I bought the vehicle, used , last summer. If there is no oil in the transfer case and there is no oil on the floor under the vehicle, no signs of oil all over the bottom of the vehicle, where did the oil go?
How did you determine that it's empty? Did you pull the bottom plug or try to dip-gauge through the top plug?
Anyway, to answer your first question, most T-cases hold around 2 quarts or less.
Don't really know how it could have consumed so much oil that it's completely empty. Heat and friction can vaporize oil and ATF, that's one way you could have lost it. But that doesn't seem like a very good answer for a vehicle that's not that old.
If you have your owners manual, it should tell you what weight of oil or type of ATF to refill it with, and the capacity of the T-case.
After you refill it, keep an eye out for leaks and check the level every time you change your engine oil.