When you import photos to Lightroom it first copies the images into its own designated area for storing of originals, and it's from that location that the images will then be uploaded to the cloud (it's done that way principally for importing SOOC images from a memory card, so that the user doesn't have to keep the card inserted into the card reader while all the images are uploaded). That designated area by default is within the local library on the system drive, however you can change the location of the locally-stored originals to an external drive which has the free space needed (Preferences>Local Storage tab). Note that once the images are uploaded, that local copy becomes eligible for deletion, i.e. over time Lightroom will delete them from the local store based on some complex rules.
In you case, if you are uploading 1tb of images which are already stored locally, it becomes a bit of a pain as you'll still need to temporarily have another 1tb of free space to contain a copy of all those images for the import/upload process to work.
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