I know the unsaturated adiabatic lapse rate is approximately 5.4°F/1000ft (9.8 °C/1000 metre), in which a "dry" parcel of air cools at that rate. The unsaturated adiabatic lapse rate depends on what?
Why is the unsaturated adiabatic lapse rate lower than the saturated? From searching, I found that the unsaturated adiabatic lapse rate is lower because the air parcel releases its latent heat, which causes the air parcel to cool more slowly, but I don't seem to get it. When a "dry" parcel of air is cooling adiabatically, are we assuming 0% moisture?
However sometimes there is a second complicating factor: the rising air may cool to the point where it is holding its maximum quantity of water vapor (because when colder, air cannot hold as much water vapor).
When it reaches this point, it is saturated, and any more cooling/rising will force some of its water vapor to condense instead into liquid droplets. For this gaseous water vapor to become a liquid, its particles must expel quite a lot of energy. And that energy gets released into the air.
So once air hits this saturation point, though its expansion continues to have a -5.4°F/1000ft impact on the temperature, it also has a second factor, that released phase change energy, warming the air some. The result is that saturated air doesn't cool as fast.