This will uninstall the game and remove the game icon from the Home screen. Select Delete when asked to confirm that you want to delete the game.
Select Manage Software from the menu on the left. I prefer this method because it keeps my Home screen clean - no shortcut buttons to games I'm not even playing anymore.
You can delete a game and its Home screen icon shortcut, freeing up the most amount of space without also deleting game save data. How to delete a digital game from your Nintendo Switch