With the push of a button and pull of a slider, you can quickly access all of your iPad's contents, including any sensitive personal data that you've stored within it.
Such easy and unrestricted accessibility to your device could be dangerous in the hands of a stranger, which is why you enable a password to block its use by anyone but you.
If you believe that your password's confidentiality has been compromised, don't fret. You can change it using your iPad's Passcode Lock feature.
Tap "Settings" on the home screen.
Tap "General" on the left sidebar.
Tap "Passcode Lock" on the main pane to the right.
Type your current four-digit passcode in the "Enter Passcode" screen that appears.
Tap "Change Passcode." Type your current four-digit passcode again in the first "Change Passcode" screen that appears.
Enter a new four-digit passcode in the second "Change Passcode" screen.
Retype your new four-digit passcode in the third "Change Passcode" screen.
This will simultaneously verify and activate your new passcode.
http://support.apple.com/kb/HT4113
iOS: Using passcodes
http://support.apple.com/kb/ht1212
iOS: Forgotten passcode or device disabled after entering wrong passcode
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