Will you be arrested in Iowa while getting your license if you have an outstanding warrant in Minnesota?

No. Each state has its own laws, and nothing can happen if you are in a different state.

Another View: NOT EXACTLY. It depends on what type of offense you are wanted for and whether MN put the warrant into the interstate criminal computer system (NCIC) - and whether IA routinely runs your name through their state criminal computer when you apply for a license. If MN will extradite you back for prosecution, IA will hold you for them based on the interstate warrant.