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I am beginning to paint my space wolves and was curious if there was a specific way that the knee pads should be painted. In the Codex it doesn't seem to have a pattern, so is it just free to interpretation?

In the 2009 Space Wolf Codex (no idea which edition of the game this applies to), on Page 80 is a description of the Space Wolf Markings.

It says
"There is a general color code, and warriors usually bear their pack marking on their right shoulder pad and their Great Company marking on the left. However, within these guidelines there is much variety."

It then goes on to say
"Pack markings may be repeated on the knee pad or the squad's transport vehicle. Individual honor markings are displayed on a grey background field."

The example drawings shows the pack marking on the left knee, and the individual honor marking on the right knee.

But, you're free to do whatever you want overall.

You could either apply a small transfer as honor marking or repeat the pack marking from the shoulder pad. Or simply leave it blank. SWs are individualistic, they don't have strict uniforms.