The instant it was dropped, the ball had zero speed.
After falling for 1 second, its speed was 9.8 m/s straight down (gravity).
Its AVERAGE speed for that 1 second was (1/2) (0 + 9.8) = 4.9 m/s.
Falling for 1 second at an average speed of 4.9 m/s, is covered 4.9 meters.
ANYTHING you drop does that, if air resistance doesn't hold it back.