Suppose I have a 20 X 30 rectangle R with an inscribed circle C of diameter 20 (touching 3 edges). What is the maximum diameter of a circle that can be inscribed in $R\setminus C$?
Clearly I can inscribe a diameter 10 circle, but clearly one can do better. What is the max?
Is there a formula for the general case of R a rectangle 1xL and C a circle of diameter 1? (Here I suppose $L\geq 1$)


If $L\geqslant 2$ then of course the best diameter is $1$. Otherwise, the best circle will touch the long side $L$, the short side $1$, and also the big circle. Let $r$ be the radius of the best circle. The picture would look something like this:
Hence, the radius $r$ satisfies
$${\left(\frac12 + r\right)}^2 = {\left(\frac12 - r\right)}^2 + {\left(L - \frac12 - r\right)}^2,$$
with solution $r(L) = \frac12 + L - \sqrt{2L}$. As a sanity check, the diameter when $L=2$ is $2r(2) = 1$.
We also have $r(3/2) = 2-\sqrt3$, which scaled by the factor of $20$ in your original problem yields a diameter of $40(2-\sqrt3)\approx 10.72$, slightly larger than $10$.