What is the space complexity of CTL model checking?
In general, CTL model checking is P-complete. Since we think that $L\neq P$ (and moreover $NL\neq P$), it is unlikely that an algorithm with logarithmic space exists. It is also unlikely that a sub-polynomial space algorithm exists, for similar reasons of common belief.

I don't know of exact space-optimizations for the problem, but in general - yes, you need to mark each state with a formula, so naively you need the size you suggest. It may be the case that you can reduce the formula by encoding it more succinctly, but it hasn't attracted attention in research.

You can start from this survey for citations.