The evolving technologies regarding Unmanned Aerial Vehicles (UAVs) have led to their extended applicability in diverse domains, including surveillance, commerce, military, and smart electric grid monitoring. Modern UAV avionics enable precise aircraft operations through autonomous navigation, obstacle identification, and collision prevention. The structures of avionics are generally complex, and thorough hierarchies and intricate connections exist in between. For a comprehensive understanding of a UAV design, this paper aims to assess and critically review the purpose-classified electronics hardware inside UAVs, each with the corresponding performance metrics thoroughly analyzed. This review includes an exploration of different algorithms used for data processing, flight control, surveillance, navigation, protection, and communication. Consequently, this paper enriches the knowledge base of UAVs, offering an informative background on various UAV design processes, particularly those related to electric smart grid applications. As a future work recommendation, an actual relevant project is openly discussed.