To Colorize Points by Elevation

In the Point Clouds dialog, select the point cloud on which you want to operate.
Open the View Attributes dialog ( Drawing > View > Presentation > View Attributes ).
In the Point Cloud Styles section's Style drop-down menu, select Elevation.
Click the Properties icon next to the Style drop-down menu.
The Properties dialog opens and displays the properties of the selected presentation style.
In the Elevation section of the Properties dialog, select the color from the Colorization drop-down menu.
In the Depth field, set the depth up to which you want the color ramp to span.
In the Start field, set the start point at which the color ramp starts.
The point cloud changes dynamically as you change these values.