A Drop Cap allows you to offset the first letter of the sentence or paragraph. It's a nice way to bring attention to the article or paragraph. MS Word allows you to choose 2 different positions - Dropped or in the Margin.
Dropped - formats the first character in the paragraph as a dropped capital letter; aligns it to the left; paragraph text wraps around the dropped cap.
In the Margin -formats the first character in the paragraph as a dropped capital letter; places it in the left margin, beginning at the first line of the paragraph.
How To Remove a Large Dropped Initial Capital Letter