Available with 3D Analyst license.
Vertical exaggeration can be used to emphasize subtle changes in a surface. This can be useful in creating visualizations of terrain where the horizontal extent of the surface is significantly greater than the amount of vertical change in the surface. A fractional vertical exaggeration can be used to flatten surfaces or features that have extreme vertical variation.
The vertical exaggeration for a 3D document is applied to all layers.
You can exaggerate a single layer by changing its z-unit conversion factor. This can be useful if you have data with different z-value units. See Vertical exaggeration and z-unit conversion of layers for more information.
The image below is an example of vertical exaggeration applied to a TIN surface to amplify the coastal region's relief. 