RJDelirious24 wrote:
I want to drop my daughter from the family sharing plan. Will her data go with her user ID and free up more space on our family plan?
Yes, her data is hers and will "go with here" so to speak. If she doesn't have sufficient iCloud storage, she will have a grace period (I believe 30 days) to obtain the appropriate storage subscription if so desired.
Also will she be able to retrieve her data once she is removed from the our family plan? Or is her data lost?
See above answer, and no, her data wouldn't be "lost".
Edit: Apple's documentation used to say 28 days (I thought it was 30) but that has been changed and I can no longer find it, but per - Share an iCloud storage plan with your family - Apple Support.
"If your family stops sharing storage or you leave Family Sharing
If you leave a family that shares an iCloud storage plan and you're using more than 5GB of storage, you can buy your own plan to continue using iCloud storage.
If you choose not to buy your own plan and the content that you’re storing in iCloud exceeds your available storage, new photos and videos won’t upload to iCloud Photos, files will no longer upload in iCloud Drive, and your iOS devices will stop backing up."