What exactly is the "paradox" in Olber's Paradox? To the extent of my understanding, Olber’s paradox states that if the universe was static and homogeneous, we should see a star at every point in the night sky and therefore the night sky should be equally as bright as day.

However, since the night sky is dark and non-uniform, it can be said that the universe is not static and not homogeneous. However, if this was already known, what exactly is the “paradox”? Why isn’t it called Olber’s Observation or something else?
Olber's Paradox was created at a time before the idea of a finite universe was accepted.  (It was thought of in the 1600's).  In order to resolve Olber's Paradox, you have to introduce the idea that either the universe had a beginning or it is of finite size.  (Note: the solution does not require an expanding universe).  So, at the time, it was a paradox.  Pretty much all astronomers considered the universe to be static and infinite.  Therefore, the fact that their observations didn't fit with what they expected made it a paradox.