Hi Hal219,
Welcome to the Apple Community.
Apple support have articles online to help you get familiar with setting up and using iCloud..
What is iCloud storage?
https://support.apple.com/en-au/guide/icloud/mm7983cbca2a/icloud
Eg: Items you store in iCloud are available on any iPhone, iPad, iPod touch or Mac that you set up for iCloud.
Set up iCloud on your iPhone, iPad, or iPod touch
https://support.apple.com/en-us/HT208681
You might want to learn the difference between your device and iCloud storage,
and ways to manage your space.
https://support.apple.com/en-us/HT206504
Use iCloud Photos on iPod Touch:
( Eg: You can access your photos and videos in iCloud Photos from any device where you’re signed in with your Apple ID.)
https://support.apple.com/en-au/guide/ipod-touch/iph961b96c4d/ios
Manage your iCloud storage
https://support.apple.com/en-us/HT204247
Re: "Second question… if he deletes a photo off iPod which has been backed up to cloud is it also deleted from cloud?"
This may depend on how you have set up iCloud, and how you manage iCloud.
Before you delete anything, you might want to make copies of your content on iCloud.
Archive or make copies of the information you're storing in iCloud:
https://support.apple.com/en-au/HT204055
For other info:
iCloud Support online:
https://support.apple.com/icloud