How does Othello present many opportunities for a dramatic performance? stage production backround setting props make-up costumes lighting
An interesting question. The most basic ways in which Othello presents interesting opportunities for performance come from the character interaction, while setting and costume gives some possibilities.
Look, for example, at how the play begins. If you wanted to play up the setting, it is set in Venice. You could literally have the canals running through the play, and could decorate Brabantio's home with lush European fabrics. You could then dress Othello as very much the outsider and make it clear that he does not belong. Or you could do the entire thing with a stage that was almost bare and dress them the same, putting pressure on the actors to distinguish themselves through their delivery.
Also starting with the first scene, you need to figure out how you're going to deal with the many asides (from Iago or Othello to themselves) in the play, and the many private conversations.
Turning to characterization, you have to make two things believable: Iago's shapeshifting evil and Othello's progression from love to jealous rage.