Historically, initial letters were used to mark the start of a new section of text. Should you choose to use a drop cap, use your eyes, too. Pay attention to spacing around the letter. Too tight, and the letter will look like it’s been crammed in. Too loose, and the letter will look like it’s floating away from the rest of the text.
Use a margin-top to place the initial letter where you want it. Traditionally, the top of a drop cap lines up horizontally with the text block. Use a padding-right to create space between the initial letter and the text. Use a good line-height on the p tag, so as text wraps around the initial letter, you don’t end up with a big gap between the drop cap and the text.
This drop cap was created by spanning a class called “dropcap” around the first letter of the first paragraph.