Firmware updates are performed from the mydlink Baby Camera Monitor Mobile App
The android app does not have any option to upgrade the firmware. I am not sure about the ipad though. I upgraded my camera via the mydlink site.
If you press the ? in the top right of the android app, on the screen where you are monitoring your camera but not actually viewing, there is some info in there about firmware upgrades. At the bottom of page 3 through to page 8
How do I upgrade firmware which shows you how to do this from a windows pc or mac using xxx.xxx.xxx.xxx/eng/admin/tools_firmware.cgi. It fails to mention that you should be using admin for the username and the password you have set for your device at initial set up. Initially having found this hyperlink in the faqs on the dlink site I was a bit wary of it but I guess as it is mentioned in the android app for this specific camera it should be ok to use, maybe. Anyone done it this way yet?