Most likely because you are currently running a version of iOS that is older than that feature. To update, you will need to connect your iPad to a computer running a current version on iTunes and update via it. Once you are on a newer version of iOS, you will be able to update directly from the iPad. The feature was added with iOS5.
You must have iOS 5 or later before that is possible. See:
4. iPad Support
a. Updating Your iOS to Version 6.0.x from iOS 5
Tap Settings > General > Software Update
If an update is available there will be an active Update button. If you are current,
then you will see a gray screen with a message saying your are up to date.
b. If you are still using iOS 4 — Updating your device to iOS 5 or later.
c. Resolving update problems
If you have an iPad 1, the max iOS is 5.1.1. For newer iPads, the current iOS is 6.0.1. For the iPad Mini the iOS is 6.0.2. The Settings>General>Software Update only appears if you have iOS 5.0 or higher currently installed.
iOS 5: Updating your device to iOS 5 or Later
How to install iOS 6
iOS: How to update your iPhone, iPad, or iPod touch
If you are currently running an iOS lower than 5.0, connect the iPad to the computer, open iTunes. Then select the iPad under the Devices heading on the left, click on the Summary tab and then click on Check for Update.
Tip - If connected to your computer, you may need to disable your firewall and anitvirus software temporarily. Then download and install the iOS update. Be sure and backup your iPad before the iOS update. After you update an iPad (except iPad 1) to iOS 6.x, the next update can be installed via wifi (i.e., not connected to your computer).