I can not find a way to turn on/off hyphenation in Pages 2.x on iOS.
In the OS X version of Pages you can turn hyphenation on/off in the setup tool (gear icon at the top right). If you sync between the iOS and OS X versions via iCloud, changing the setting on the computer version, and saving, will also change it on the iOS device's version of the document.
If you use Windows, or a different word processor on the computer then try changing the hyphenation behavior there and re-importing the document. Or export, change, import, if you've make changes to the iOS version. Though that can get messy if the document is complicated.
If you created the document in Pages on the iOS device, I don't know what to say. None of the documents I tested auto-hyphenated (until I forced it in the OS X version of Pages), so it does not appear to be the default setting in iOS, but most of my documents were created in the older version of Pages, so that's no guarantee.
Sorry not to be of more help.