Are those block walls? It's hard to see with what else is on the wall. How is it insulated? Assuming it's block walls and open on the inside, you can put furring strips over the block and then attach your plywood or osb to it. I'd suggest pressure treated plywood as it will last the longest.

What are the exterior walls made of? I don't see where there is insulation.

You need to install 2x2's - 16" on center, to the inside walls. Attach the 2x2's the top and bottom plate - you can use deck screws. You could add 1 1/2" foam insulation between the 2x2's. This is where you would run any electrical wires. Then attach the sheetrock to the 2x2's.

That looks like a metal pole barn, not a normal garage.