I am new to Apple after being on Windows for my whole life, so please forgive me if this is a stupid question. But my storage is not close to being full, but it is telling that it is... please help a newbie.
There's a difference between iCloud storage and on-device storage. One can be full while the other is not. Since you get just 5 GB of free iCloud storage while you can have far more on-device storage, it's not that hard to exceed iCloud storage while having plenty of storage remaining on your device.
To see what's in iCloud, go to Settings > [your name] > iCloud > Manage Storage.
To see what's stored on your device, go to Settings > General > iPhone (iPad/iPod Touch) Storage.