Let's denote the base edge length of the right circular cylinder as $a$. Then, the distance $OA$ from the center $O$ of the base to vertex $A$ is $OA=\frac{\sqrt{3}a}{2} \cdot \frac{2}{3} = \frac{\sqrt{3}a}{3}$.

Thus, the height of the cylinder is $h = 2\sqrt{r^2 - OA^2} = 2\sqrt{1 - \frac{a^2}{3}}$.

The volume of the right circular cylinder is then $V = S_{\triangle ABC} \cdot h = \frac{\sqrt{3}a^2}{4} \cdot 2\sqrt{1 - \frac{a^2}{3}} = \frac{\sqrt{3}}{2}\sqrt{a^4\left(1 - \frac{a^2}{3}\right)} = \sqrt{\frac{a^2}{2} \cdot \frac{a^2}{2} \cdot (3-a^2)} \leq 1$.

Equality occurs if and only if $\frac{a^2}{2} = \frac{a^2}{2} = 3 - a^2$, which implies $a = \sqrt{2}$.

Under these circumstances, the height of the cylinder is $h = 2\sqrt{1 - \frac{a^2}{3}} = 2\sqrt{\frac{1}{3}} = \boxed{\frac{2\sqrt{3}}{3}}$.

To find the maximum volume, we set the base edge length as $a$ and express the cylinder's volume $V$ in terms of $a$. We then find the critical point(s) of $V(a)$ and determine the height $h$ of the cylinder at this point(s).

This problem tests understanding of the relationship between a cylinder and its circumscribed sphere, volume calculation of a cylinder, and applications of basic inequalities. It is of moderate difficulty.