Assisted GPS (AGPS) is good old fashioned GPS with some extra stuff that makes it faster, and a bit more accurate. There are several of these extra technologies, and any Assited GPS may use one or more of them.
In the case of iOS devices it means that the iPad will use triangulation from nearby cellular towers and wi-fi hotspots for a quick, rought location estimate.
It also uses an internet or cellular connection to download the time tables and correction data necessary for GPS to work. Plain old GPS has to download these from the satelite transmissions, which can take a few minutes. Downloading them from the internet takes fractions of a second.
There may be some other things going on, but those are the two main assisting technologies.
The upshot is that on an iPad with no internet or cellular connection the GPS may take longer to find you're initial location, and depending on how many satelites are visible it may be slightly less accurate, but it will work.
In other words, it work about as well as a dedicated GPS unit under the same limitations. It possible the dedicated GPS unit will have a better antenna and radio, see more satelites, and therefore be a bit more accurate; but that would be a 'good' and probably moderately expensive GPS unit.
If you want more details of what AGPS is about, Wikipdedia has a pretty good article on the subject.