If you prefer not to have the first letter of your text automatically capitalized and instead want to start a typewriter (text box) annotation with a lowercase letter, you can follow one of these suggestions.
Auto-capitalization is an OS wide setting. There are two ways to manage the setting.
A. Auto-Capitalization can be disabled in the settings app of the iPad if you do not ever want auto-capitalization:
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Navigate to the settings app of the iPad
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Tap "General"
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Tap "Keyboard"
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Turn "auto-capitalization" off (grey not green)
B. If you do want auto-capitalization most of the time, there is a keyboard shortcut to override and make the letter lowercase for occasional use:
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Tap "shift" on your keyboard. Do not hold it down.
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Tap the letter you are starting with and it will type a lowercase letter.