When performing an OTA update from iPad settings, you may temporarily require double the stated space requirement for the system software update. With storage constrained devices, in particular those models with only 32 or 64GB internal storage, maintaining adequate unused storage can be a significant challenge.
It is generally recommended that you maintain at least 4-6GB of free space at all times - as your iPad needs some temporary space to complete many tasks. When performing system software updates, you may temporarily require more...
A system software update requires sufficient space to be downloaded, unpacked and verified prior to installation - major version updates (such as updating from iPadOS 17.x to iPadOS 18) requiring considerably more space than an incremental point-update. After the update is successfully completed, temporary files are automatically deleted - returning free space.
If your internal storage is full, or is insufficient for the task that you need to perform, your only option is to better manage the storage that you have - and delete unused Apps or unneeded data.
These support pages should prove to be helpful:
About storage on your device and in iCloud – Apple Support
What's the difference between device storage and iCloud storage? – Apple Support
Manage your iCloud storage – Apple Support
How to check the storage on your iPhone, iPad and iPod touch – Apple Support
Clear Other storage on your iPhone or iPad - Apple Support
“Offloading” Apps can be a helpful method of creating temporary space for a software update:
https://9to5mac.com/2020/01/21/how-to-offload-apps-in-ios-to-save-space-without-deleting-their-data/
Additional information about creating sufficient space for installation of a software update can be found here:
If you need more space for an update on your iPhone, iPad, or iPod touch - Apple Support
External storage options can often help with managing limited internal storage. Depending upon your iPad model, the iPad will either have a Lightning or USB-C port - and may therefore require either an Adapter or USB hub to connect the USB Storage device. If your iPad has a Lightning port, you’ll need an Apple Lightning to USB3 Camera Adapter:
- Lightning to USB 3 Camera Adapter
https://store.apple.com/uk/xc/product/MK0W2ZM/A
An alternative strategy where space is short is to perform the update using a Windows PC (with iTunes for Windows installed) or a Mac computer (with iTunes or Finder - as appropriate for the installed version of macOS) to perform the update. Here the update package is downloaded, unpacked and verified on the computer - before the update is installed by the computer on the target device. Notwithstanding the general recommendation to maintain at least 4-6GB of free-space on the iPad, this method requires considerably less free-space to successfully install an OS update on a space-constrained device.