This is what I do.
I use the VLC player almost exclusively since it can play anything.
Since you want to save space and eventually download to youtube I would recommend a 2 step process.
First record it in high quality.
Then use a small app called Flv Crunch to convert "any" file format to flv type that is enormous size reduction and compatible with youtube.
It is very easy to use and control the settings.
Convert files between flv, mpeg 1/2/4, 3gp, mp3, m4a, wmv, wma, avi, mkv, aiff, and others.
Then delete the original (ok that was 3 steps :)
why do it this way?
I learned the hard way that once the event is over you are stuck with what ever quality you used to record. Thus I recommend you always record in high quality, since it is easy to reduce the file size to quality you want as end product.
For example you recorded something that needs to be magnified or altered for clarity, that would not be possible any more if recording in low quality.
About Flash Video Format:
FLV files are videos that are encoded by Adobe Flash software. They
can be played via the Adobe Flash Player, web browser plugins or one
of several third party programs. Since virtually everyone has the
player installed on their browsers, it has become the most common
online video viewing platform used on the Web today. As almost all
video sharing sites such as Youtube stream videos in Flash,
practically all browsers support and are compatible with the Flash
Video format and can play the video with ease. In addition to being an
online video viewing format, the Flash Video format is also what many
video-sharing sites convert videos to, from formats that were uploaded
by their users in something other than Flash.
This is because videos in the FLV format remain in high quality even
after compression to a smaller file size, which means that the videos
on the Web load quickly and won’t spend a lot of time using up
bandwidth.
Some notable users of the Flash Video are Youtube, Yahoo! Video, VEVO,
Hulu and Myspace among many others.
Best Answer
To the best of my knowledge, OTG flash drives come in either microUSB or USB Type-C versions.
As no past or current model of iPhone or iPad natively support these connections, it's unlikely that OTG flash drives will bundle the software and adapter needed to be used by your iPhone. That's because iOS itself would require specific apps to allow data to be accessed from an external device, and also because it'd need to support a Lightning port connection in some way.
The only options I've seen that would allow you to do what you want, are custom designed solutions specifically targeting iOS devices. For example, there are iPhone cases that include storage and an app to allow the iPhone to use that storage. Likewise there are specific flash drives that do the same.
Below are three examples:
NOTE: I have not personally used any of these devices - I list them purely as examples of what I'm referring to.