In order to create a drop cap in InDesign, you'll need to first select the object or text frame that you want to use for the drop cap. Next, go to the "Object" menu and select "Text Frame Options." In the Text Frame Options dialog box, select the "General" tab and then click on the "Drop Cap" button. This will open up the Drop Cap Options dialog box. In the Drop Cap Options dialog box, you can select how many lines the drop cap should span, as well as the number of characters that should be dropped. You can also select whether the drop cap should be flush with the left or right margin, or whether it should be indented. Once you've made your selections, click "OK" to close the dialog box and apply the changes.