Microsoft is calling the iPad Pro's larger size not a "true mobile device," and as such, will require an Office 365 subscription to allow users to edit and save documents. At this time, the end user agreement for the iOS version doesn't specify this restriction, but the Android and Windows Store version both have the restrictive clause.
The Android end-user license agreement for Android specifically states that if users "only use the application on devices with a screen less than or equal to 10.1 inches to view documents and perform core editing features, see Section C below. If you use the application on devices with a screen size less than or equal to 10.1 inches, or devices with a screen size greater than 10.1 inches to unlock premium editing features in addition to the core features, see Sections A and B below to determine which section applies to your use of the application. If you are not a Microsoft Office 365 subscriber entitled to the rights under Sections A or B, see Section C below and note your use is limited to viewing and printing features." Microsoft's free Windows 10 OS has a similar size restriction, with nine inches being the cutoff for free use of the OS.
Editing and saving will remain free on the smaller iPad, iPad mini, and iPhone.
Ars Technica confirmed the screen size restriction with Microsoft, as well as the existence of some form of device-based lockout. It is unclear what Microsoft has planned for the lockout.