The LCD screen has a backlight that illuminates the screen from behind. The screen construction is such that the screen is edge-lit by Light Emitting Diodes (LEDs) distributed around the periphery of the screen; a screen diffuser layer distributes this light across the rear surface of the screen to provide even illumination across its full surface.
The diffuser is a laminated component of the LCD screen. In some circumstances, this layer can de-laminate from the LCD - allowing light from edge backlights to leak (or “bleed”) into the visible edge of the screen - this effect being most noticeable in dark environments with a bright screen.
In context, your photos have been taken in an environment with no ambient lighting (i.e., a darkened room) with the screen brightness increased to maximum. In these extreme conditions, most (if not all) backlit LCD screens will show some signs of edge-backlight bleed - this being entirely invisible when the iPad is being used with normal levels of ambient light.
Backlight bleed becomes an issue when some of the LEDs fail - leading to an effect known as “Stage Lighting” - this being visible while the device is being used in normal lighting conditions. Your iPad does not appear to show signs of this fault.
All that said, your iPad screen has a visible crack that will, unavoidably, affect performance of the screen and/or touch sensitivity. As the crack is classified as damage, any backlighting issues that may be present will be automatically disregarded, by Apple, as a potential fault.
If you are concerned, your iPad screen will require repair - which for all practical purposes will entail replacement:
iPad Repair & Service - Apple Support