These support pages should get you started with setup of your new iPad - and the available methods of automatically transferring your data from old to new iPad:
Set up your iPhone, iPad or iPod touch – Apple Support
Transfer data from your previous iOS device to your new iPhone, iPad, or iPod touch - Apple Support
Use Quick Start to transfer data to a new iPhone, iPad or iPod touch – Apple Support
If the donor iPad, from which you are transferring your data precedes iOS12.4, QuickStart will not be available.
“Transfer” is rather a misnomer. In reality, your data and setup is merely cloned to the new device. Nothing is moved or removed from the original device.
An alternative is to restore either an iCloud or iTunes backup to the new device:
How to back up your iPhone, iPad and iPod touch – Apple Support
Restore your iPhone, iPad, or iPod touch from a backup - Apple Support
When you are ready, the best procedure for preparing you old device for disposal or reuse can be found here:
What to do before you sell, give away or trade in your iPhone, iPad or iPod touch – Apple Support
In context of your question concerning QuickStart, never having attempted this process without a Passcode being previously set, I cannot provide a definitive answer as to what might occur at Step #5 of the procedure. However, you should consider that many features within iOS/iPadOS (such as KeyChain) cannot function unless a Passcode has initially been set - even if the auto-lock function has been subsequently disabled. As such, your question may actually be irrelevant - as a Passcode will actually be present.
While you may not normally use a Passcode, so as to facilitate a smooth data transfer process without risk of issues, you would be well advised to ensure that you have set a known Passcode prior to beginning the transfer process - as doing so will ensure that no surprises or anticipated difficulties will occur.
Similarly, ensure that you have your AppleID and associated Password are similarly known.