Rotate images in notes.

There is no way to re-size or rotate a selection or images in the free, very basic Apple Notes App.

If you really want to get thr most out of that Apple Pencil and need extra note-taking features, I recommend looking at other third party note taking apps.

Apple's free, default, iOS Notes app a a basic notes apps that Apple includes, more or less, as a example “showcase” app of what could be done when designing/coding a more fully featured note-taking app.

Apple's free Notes app is NOT a full featured notes app and has many useful features not available to it.

Apple has always treated their iOS Notes app in a way where the app is like only approx. 80% “there”.

To make the free iOS Notes app a relatively basic, simple notes app that anyone can, more or less, learn fairly easily, Apple's Notes has eschewed many useful features found in other more powerful and robust/feature-rich, third party note taking apps.

Also, to also emphasize how basic the free iOS Notes app is, Apple ONLY upgrades/updates this app once a year with a new iOS/iPadOS version introduction every September/October.

If you need more features from a notes/note taking app, I recommend you look to the Apple iOS App Store for more fully featured, third party apps that get many regular updates throughout the years!

Here is an incomplete list of notes/note taking apps you may wish/want to look at that are more robust and feature-rich, in no particular order.

INKredible

Liquid Text

Margin Note 3

Microsoft One note

Nebo

Notability

Notepad+/Notrpad+ Pro

NoteShelf 2

Notes Plus

Notes Writer/(Pro)

Notebook

Good Notes 5

Zoom Notes

Quick Notes X Pro

Best of Luck to You!