In your document, you can open the settings of the document (three dots in the top right corner).
In the Settings you can then disable dictation which will lead to the icon vanishing:
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I am editing text in a word document in iOS and now, for the first time, I see a microphone icon on the right side of the text area. I already have one on the bottom right of my keyboard which I use regularly. I’m only given three lines to edit in this iPhone app, so this mic icon gets in the way. When I try to select text on my phone, it selects far too much very quickly, so I go back-and-forth 20 or 30 lines in each direction with the smallest of movements with my finger. Also, is there a way to slow that down? Besides, if I select this icon, it takes me to the beginning of the document and asks me what I want to do – very frustrating. This must’ve been added to a recent update because this oversized obnoxious white mic was never in the text area before. This helps no one and only pisses people off. I don’t see any option that controls this in the menu. There’s no way of getting any meaningful information from the Microsoft help menu because none of the options provided match my request. IT NEVER HAS! Attention Microsoft – why have you never fixed this useless search engine? I can only use iOS because I have a tablet and an iPhone, not a computer. Can a human please help me with this? Sending us useless links that don’t address the issue just makes us mad. Using your tags function provides no results. How am I notified when my questions have been addressed? Am I sent an email or do I have to find this place again? PLEASE help me (all of us) with this! Thank you so much! 👏🏻 👍🏻 ☺️
In your document, you can open the settings of the document (three dots in the top right corner).
In the Settings you can then disable dictation which will lead to the icon vanishing: