Potential energy = (mass) x (gravity) x (height above the reference level).
With respect to Steven ... the dude you said is holding the ball and getting ready
to drop it ... its gravitational potential energy is zero. Its height above him is zero.
With respect to Shawn or Shaman or Shmendrik or whoever it is standing on
the ground 10meters below, its potential energy is
(0.2kg) x (9.8 m/s²) x (10m) = 19.6 joules