When an object is dropped underwater, gravity's pull remains constant, but drag significantly slows its descent. The dynamics of an object submerged in water must account for both buoyancy and drag, which can be modeled using differential equations. The provided equation incorporates mass, fluid density, body density, gravity, volume, area, and drag coefficient, emphasizing the importance of accurate definitions for drag terms. For varying heights, factors like fluid density, volume, and area should be treated as functions of displacement. The discussion also notes that buoyancy effects are typically negligible in air but become crucial for lighter objects, such as helium balloons.