It's a good thing the Drill is labeled so obviously, because the Prisoners otherwise might not know what it is. They'd probably try to pee on it, or wear it, or carve runes in it invoking Elves and such.
The Drill is strong enough to go through dirt and wood, but not steel. All three of the Prisoners get a chance to play with it.
At one point the Drill falls out of the sky and lands on Logorg, destroying him. It is later incorporated into the design for Drillgorg.