The arrow pad is designed to make reorganizing and navigating in an outline easy on a tablet like the iPad.
To access the arrow pad, choose the command from the Outliner menu.
There are two buttons and four arrows.
The leftmost button says either Navigate or Reorg.
If it says Navigate, the arrows move the cursor.
If it says Reorg, the arrows reorganize the outline.
The arrows move in the indicated direction, when you click them.
The rightmost button says either Expand or Collapse.
When you're in text mode in the outline, the arrow pad automatically goes into Reorg mode.