That looks like compression damage to the lcd , likely on the bottom near the home button. Or it could be a loose cable going from the lcd to the logic board.
Try the following:
1.Hard reset by holding the home and power button for 10 seconds.
2. If that doesn't work , give the iPad a good solid smack on the back the same side as the volume buttons but towards the bottom.
3. Apply some pressure to the screen, near the home button. Does anything change?
The odds are likely that the lcd needs to be replaced. That is either a mini 1or 2 ( I'm guessing 2). A good third party repair shop should only charge $150 or so to replace it.
If you still have warranty or apple care, take it to the Apple Store. Otherwise, they will just tell you to buy a new one so don't bother.