iCloud Photo Library: Out of storage messages and how to fix it!

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Setting up iCloud Photo Library on a Mac or PC for the first time can result in out of storage messages on iPhone and iPad.
iCloud Photo Library can help you save tremendous amounts of storage across iPhones, iPads, and Macs. For most of us, we have thousands of photos stored on our computers. When we first sync these to iCloud Photo Library, they'll also come down to all our iPhones and iPads. Depending on how you have iCloud Photo Library set up on your iPhone or iPad, you may start receiving out of storage messages. This is exactly the issue an iMore reader is having:
"I enabled iCloud Photo Library on my iPhone, iPad, and Mac. Within a few hours, I received out of storage messages on my iPhone and iPad. I thought my photos were streamed, not stored. How do I fix this issue?"
I experienced the same issue as well when I initially enabled iCloud Photo Library. Luckily, there's a super simple way to fix it!

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