Ipad keyboard

Okay, seems you’re using the virtual, on-screen keyboard, and not an external hardware keyboard.

The up arrow ⬆️ is the shift key. It’ll change from grey to white when shift is selected for the next key. After that key, it’ll clear itself. When the shift key is white and has an underline ⏏️, it’s caps lock. It’ll remain shifted until tapped again. When shift is selected, the keyboard will show the shifted case.

Unshifted:

Shifted:

Caps lock:

If that’s not happening here, then check for any add-on software keyboards and temporarily delete them, check the show-lowercase keys mentioned above over in the accessibility section, and try restarting your iPhone.

Apple has more info on how this is supposed to work: Add or change keyboards on iPhone - Apple Support

Blue text shown here in the forums is a clickable link to more info.

Does the on-screen virtual keyboard show lowercase, but (also) upcase your input?

Toggle the caps lock on the keyboard, and try again?

Try a different keyboard?

Any keyboard app add-ons loaded? If so, disable those, and try again.

Try looking at this setting