In Microsoft Word 2007 or 2010, you can make the first letter of a document, section or paragraph larger than the surrounding text. To format an initial letter in this style, called a dropped cap, use Word's special Drop Cap function. Although you could simply apply a larger font size to the first letter, using this feature creates the style more easily and blends it into the paragraph better. You can situate the dropped cap in the margin, which is difficult to do manually, or you can drop the cap into the paragraph, instead of having it jut out far above the first line.
Type the first word, sentence or paragraph in the document or section that you want to begin with a large first letter. You can insert a dropped cap in any paragraph, but only after you have typed some text.
Click anywhere in the paragraph after the first letter that you want to enlarge. If you click at the beginning of the paragraph, to the left of the first letter, then the Drop Cap feature won't be available. Clicking immediately after the first letter or clicking anywhere else in the paragraph will transform only the first letter of the paragraph.
Click the "Insert" tab on the ribbon.
Click the "Drop Cap" icon on the ribbon.
Choose an option from the drop-down Drop Cap menu. To place the dropped cap in the margin, next to the paragraph, choose "In Margin"; to place it directly in the paragraph, choose "Dropped."