Green dot on a shared note
What does the green dot next to a name of a shared note mean?
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A coloured dot indicates that there has been an update to that shared note.
Different colours reportedly represent a specific person with whom the Note is shared - and can make edits. So, if you are sharing Notes with different people, each may have a unique colour assigned.
More information about collaborating and sharing Notes can be found within the iPad User Guide:
Share notes and collaborate on iPad - Apple Support
A further explanation can be found here:
https://www.imore.com/how-collaborate-others-notes-app-iphone-ipad