In our old house the drywall on the kitchen ceiling has to be replaced due to water damage. Original walls are 10' tall. Previous owners dropped the ceiling two feet to hide wires, plumbing, etc. At this time there is no insulation in the attic. Plans are to have some blown in soon. My question is should I insulate between the ceiling joists which is 2 feet below the attic floor or will the insulation blown into the attic suffice ?
It's not common to see insulation below a hard ceiling (immediately above a suspended ceiling--even if it's drywall). That space is considered "conditioned".
However, if your dropped ceiling is in effect a hard ceiling, it may make sense to insulate at that level. To do so reduces the conditioned space volume and would be more efficient.
It's going to depend on access and the structure around that room, as well as wall insulation and HVAC configuration.
In response to your comment, it wouldn't be a problem to insulate the lower ceiling as long as you have a continuous blanket through to the ceiling in adjacent rooms.
Yes, you can insulate above the "suspend" ceiling. (To me, a "suspended" ceiling is a ceiling that has panels that can be lifted out of a framework and a "drop" ceiling is a ceiling that is furred down (framed down) below another ceiling.)
However, if you insulate above a suspended ceiling, you'll always have the possibility of insulation fibers falling down every time you move one of the panels. Also, you'll need to insulate the perimeter of the room where the ceiling "steps up" to meet the adjoining higher ceiling. (You'll need to use "batt insulation" not "blown in insulation" too.)
I like the idea of insulating the lower ceiling because it's less volume to heat, but that's minor compared to the issues of not insulating the perimeter walls of the room from the lower ceiling up to the higher ceiling and losing heat that way. I think I'd insulate at the higher ceiling height and know it's completely insulated. Keep it simple...