I bought a set of Oros from the factory shop, and they did need a bleed before use. There shouldn’t be a massive amount of travel before the pads meet the rotor. Don’t forget about the adjuster dial on the inside of the lever which alters how far the pads sit away from the rotor, because of the nature of the master cylinder, I find “Closest in” has the little knob at the top on the front brake, and at the bottom for the rear brake. (I hope that makes sense!)
Formula K24s use the same bleed port as Avid Juicys so you should be able to get a bleed kit including some dot 4 or 5.1 reasonably cheap. If you follow the instructions, it’s really straight forward.
The pads that come with the brakes have been fine for Peak district slop, although they don’t last very long, mine went to the backing plate without any real change in feel. I changed them for Superstar Sintered pads, and they provide excellent braking, and last much longer than the OEM pads that came fitted.