Technically, Padded is just the Full Width Site Layout, with extra options for the padding across the website edges.
The padding remains consistent even when user scrolls and thus, it results in a neat frame kind of design for the website, seen on many creative websites.
You can find the settings in Appearance > Customize > Layout > Container > Site Layout
Note: Padded layouts work best with Full Width / Stretched.
You can manage the padding independently for different devices as we’ve provided that flexibility.
Here is one of the Astra Demo Websites where we have used padded layout option:
If you have the Colors and Background module enabled from Astra Pro, you get an option to set a background image for the entire site under
Please refer- How to set Background Image for the site?