Drama is highly emotional. It can happen on stage, like a performance of "Hamlet," or in a gaggle of 7th grade girls, breathlessly dissecting why so-and-so broke up with what's-her-name.
The word drama comes directly from Greek, meaning "action" or "a play." Which is no surprise, since ancient Athens was a hotbed of dramatic theater. The earliest recorded actor was a Greek named Thespis, and actors today are still called "thespians" in his honor. Drama doesn't always take place on the stage, though. You can use the word, sometimes with a roll of the eyes, to describe behavior or a reaction to a situation that appears a little overly emotional.