How should I choose the z-axis Workspace

I am new to CNC Routers and I am not clear about how much z-axis workspace I would need to cut to a particular depth. Do the bit cut size and the thickness of the piece that I want to cut subtract from the z-axis workspace? So if I want to cut 2" into a 3" thick piece of wood, what does my z-axis workspace need to be? I see comments that some people drop the table height to work on large work pieces, how is that related to z-axis workspace?

If the machine and workpiece are on the same table, you would need 5" to cut 2" into a 3" work piece.

A 2" bit on wood is going to have a lot of force and unless you’re doing something small like a mortise, it is going to take a while. Trying to cut something that deep is going to be a challenge for a beginner.

What you NEED is your material thickness + the length of tool sticking below the collet + 1/8inch minimum to allow the bit to move across without scarring the material.