Diamond quantum sensors are sensitive to weak microwave magnetic fields resonant to the spin transitions. However, the spectral resolution in such protocols is ultimately limited by the sensor lifetime. Here, we demonstrate a heterodyne detection method for microwaves (MW) leading to a lifetime independent spectral resolution in the GHz range. We reference the MW signal to a local oscillator by generating the initial superposition state from a coherent source. Experimentally, we achieve a spectral resolution below 1 Hz for a 4 GHz signal far below the sensor lifetime limit of kilohertz. Furthermore, we show control over the interaction of the MW-field with the two-level system by applying dressing fields, pulsed Mollow absorption and Floquet dynamics under strong longitudinal radio frequency drive. While pulsed Mollow absorption leads to improved sensitivity, the Floquet dynamics allow robust control, independent from the system's resonance frequency. Our work is important for future studies in sensing weak microwave signals in a wide frequency range with high spectral resolution.