Oops-- didn't see your recent post. First-- those numbers don't update immediately, and they can be trusted only so far. "They're more like guidelines, really." You may need to reboot and wait awhile to see anything. I don't think that you have told us if you have "Optimize Storage" checked.
iCloud can synchronize a bunch of things other than just Photos, so that's why there's more than one choice. You can have iCloud synchronize your Documents folder, for instance. Pictures may be a small part.
On my iPad and iPhone I have "Optimize Storage" turned on in Photos Settings, since they have smaller screens. Optimize can keep only smaller versions of pictures on the iPad. If you Optimize Storage and need to zoom or edit a picture, the full sized image is quickly pulled from iCloud. This works really well, and Optimize drops the storage use to maybe 10% or 20% of what it would be, otherwise. One thing: if you turn off iCloud syncing, then all these pictures disappear from the iPad, because they're not fully there. The originals remain at iCloud.com.
On my Mac I have "Download Originals" checked, because, mostly, I want to be able to back up my Photos Library to an external drive, and "Optimize" would store only smaller images.
As muguy says, iCloud keeps the Photos Libraries exactly the same. You can turn off iCloud syncing, but if you turn it on again, it will upload any new pictures it finds to iCloud, and download any new pictures to the iPad. But if you delete pictures while it is still connected to iCloud, those pictures will be deleted everywhere. Because of this, when I delete pictures, I let them live in Recently Deleted for their appointed 30days of purgatory in case I find that I've screwed up.