Terrain Opacity
You can set the opacity of the terrain in the 3D Window. The opacity is defined as a percentage, where 100% is opaque and 0% is transparent. When the opacity is less than 100% (opaque) objects that are submerged in the terrain become visible through it.
Terrain Objects with Controlled Terrain Opacity
To change the terrain opacity:
§ On the View tab, in the Terrain Imagery group, drag the Terrain Opacity slider.
Terrain Opacity Slider