A picture is worth a thousand words…
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Maybe you’re just holding it wrong? 
Must be an OS level issue rather than a Drafts issue as app orientation and keyboard orientation should both be governed at the OS level.
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I dunno. In any case, it fixed itself after rotating to portrait and back. I have noticed some other issues where the action list and/or Drafts list are cut off as if I were using the full keyboard even when using the floater.
Unfortunately, most of these are iPadOS-level issues and not things I can easily workaround. I’m sure Apple will sort them out in bug fixes over the next few months…and I’ll keep an eye on ones I can avoid. As it is the system is often still reporting inaccurate information to the app about keyboard sizing - especially in multi-window situations.