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The process stops if a word cannot be found in the selected dictionary. A text fragment with the suspicious word highlighted is displayed in the upper box, and suggestions are listed in the lower box; click on the desired suggestion and click Replace or Replace All or use Ignore or Ignore All to accept the word without change.  Click Add to add the current suspect word to the selected dictionary
Spelling errors are corrected as you type, unless you turned off the Auto-Correction setting for your iPad. If you turned off this setting, you can still flag spelling errors as you enter text in Pages documents. You can also add terms to the dictionary so they’re not marked as misspellings
Spelling suggestions are powered by machine learning. As language understanding models use billions of common phrases and sentences to automatically learn about the world, they can also reflect human cognitive biases. Being aware of this is a good start, and the conversation around how to handle it is ongoing