How do I get more space on Ubuntu with a bootable USB drive?

I used Unetbootin to download Ubuntu iso file onto my 60gb USB drive. I also tried using Rufus to do the same thing. They both worked and I was able to boot into Ubuntu. Ubuntu is great and it works very clean and fast. I just need to get more space or storage to use because my space is running low. I have Windows 10 and I dual-booted using my usb drive. I am not using a virtual boot software like virtual box. Some people have been recommending live cd disks to boot and that is what Unetbootin is, however I don’t know what the difference is between a persistent live cd or usb and a physical usb is. Unetbootin just added the iso file to my physical usb so I don’t know why they call it a live cd writer. Also, since my USB only contains the iso and some Ubuntu programs, I am in need of more storage space. I have gparted downloaded and I have that and my disk utility opened up but am confused on what to do next. my USB is sdb1 whereas my Windows memory are all sda drives so I can’t allocate my memory to my sdb drive. Should I go back and boot into windows and create a partition there? If so, how do I add the partition separately to where I can boot back into Ubuntu and allocate that partitioned space to my USB drive? Please help! Thank you!

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