iCloud holds your backups, iCloud drive, passwords, mail, if turned on, and iMessage, if turned on. In my opinion only, I would suggest checking your iCloud settings first, go to settings>name at top>iCloud, and see what you have turned on. If you have iMessage turned on, go back to settings>message>keep messages> (default is set at forever. I would change that to a year). And then I would go through all the iCloud storage recommendations if any, settings>name at top>icloud>icloud storage. Then I would change iCloud storage to 200gb because my iPhone storage (which is separate from iCloud), is 64gb. To check the iPhone storage go to settings>general>iPhone storage.
I would definitely suggest trying to get it down, but iCloud is an "all or nothing" service. If it is paused, it is usually because of not enough space. Here is a couple of links that might help:
What's the difference between device storage and iCloud storage? - Apple Support
Manage your iCloud storage - Apple Support
What does iCloud back up? - Apple Support
Apps and features that use iCloud - Apple Support