domain name drop list is a list containing the expired domain names that will be deleted from the domain name registry in the near future. These lists are typically used by domainers to locate expiring domain names with value.
it's pretty hard to pick up an expired domain with any value, because there are a lot of big boys out there who have automated the process. They tend to work on whether a dropped domain has / had any backlinks. So what you're more likely top pick up is a 'good' name, that has never been used / has few or no backlinks.