Monitoring water quality is crucial for understanding aquatic ecosystem health and changes in physical, chemical, and microbial water quality standards. Water quality critically influences industrial, agricultural, and domestic uses of water. Remote sensing techniques can monitor and measure water quality parameters accurately and quantitatively. Earth observation satellites equipped with optical and thermal sensors have proven effective in providing the temporal and spatial data required for monitoring the water quality of inland water bodies. However, using satellite-derived data are associated with coarse spatial resolution and thus are unsuitable for monitoring the water quality of small inland water bodies. With the development of unmanned aerial vehicles (UAVs) and artificial intelligence, there has been significant advancement in remotely sensed water quality retrieval of small water bodies, which provides water for crop irrigation. This article presents the application of remotely sensed data from UAVs to retrieve key water quality parameters such as surface water temperature, total suspended solids (TSS), and Chromophoric dissolved organic matter (CDOM) in inland water bodies. In particular, the review comprehensively analyses the potential advancements in utilising drone technology along with machine learning algorithms, platform type, sensor characteristics, statistical metrics, and validation techniques for monitoring these water quality parameters. The study discusses the strengths, challenges, and limitations of using UAVs in estimating water temperature, TSS, and CDOM in small water bodies. Finally, possible solutions and remarks for retrieving water quality parameters using UAVs are provided. The review is important for future development and research in water quality for agricultural production in small water bodies.