What is the best way to board interior of a large shed?
For an uninsulated shed I usually find exposed studs more useful for hanging/storing most tools, with the occasional board where that's not true. 

Anyway, for a dry, uninsulated, unheated shed, you need not do anything more than nail (or screw) it to the framing. I would actively avoid @Chris Cudmore's "gap" suggestion, however, since it sounds like making exceedingly convenient rodent housing, to me. I'd keep it as tight as possible and might even caulk any unavoidable gaps to make life more difficult for rodents and insects (could be delightful and hard-to-get-at wasp habitat, too.)