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Hello, I'm Dr. Deb and will do my best to help with this concern about Henry.
Unfortunately, dogs eat inappropriate things all the time but, fortunately, they rarely suffer any significant consequences when they do.
And, that would be the case for Henry. Even though he's a small dog, I'd expect the 1" felt pad to pass through his gi system just fine.
I'd monitor his stools for evidence of it which may take 12-24 hours..or a little longer if it remains in his stomach (which sometimes happens).
I might feed him additional fiber such as whole wheat bread and increase his activity/play which can help to increase transit time but, other than that, no action on your part is necessary.
I hope this helps to reassure you about him, Deb