Your iPad supports FAT, FAT32, exFAT (FAT64), APFS or HFS+ with a single partition. Microsoft NTFS and other proprietary formats are not supported.
You should note that due to fundamental formatting limitations, not all formats can support very large file sizes.
External storage devices are usually formatted appropriately during manufacture. Most thumb-drives will be factory-formatted as either FAT32 or exFAT.
Unless you have very deep pockets, you are very unlikely to encounter any commercial external storage devices that have storage capacity that exceed the capabilities of your iPad.
The most likely limitation that you will encounter is insufficient power. A powered USB-C hub (that is explicitly stated as compatible with iPad) will provide adequate power for both the connected USB Storage device and/or other connected USB accessories - and simultaneously charge the iPad.
Some additional information can be found here:
Connect external devices or servers with Files on iPhone - Apple Support
https://www.imore.com/how-use-external-hard-drives-your-iphone-or-ipad