The DROP statement during the compilation phase of the DATA step flags variables in the Program Data Vector (PDV) to be dropped when the data set is output. This means that although the variables exist in the PDV during the DATA step execution, they will not be written to the output data set. The DROP statement does not affect the order of variables (which is the purpose of the ORDER= data set option), nor does it remove variables from the input data set or prevent them from being created in the PDV.
References:
SAS documentation on the DROP statement.
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