The sedimentation behavior of a concentrated suspension of charged liquid drops is analyzed theoretically at arbitrary surface potential and arbitrary double-layer thickness; that is, the effects of double-layer polarization and double-layer overlapping are taken into account. Kuwabara's unit cell model is employed to model the suspension system, and a pseudospectral method based on the Chebyshev polynomial is adopted to solve the governing electrokinetic equations numerically. Several interesting phenomena, which are of significant influence if the internal flow inside a liquid drop is taken into account, are observed. Key factors are examined such as the thickness of the electric double layer, the magnitude of the surface potential, the volume fraction of liquid drops, and the viscosity of the internal fluid. The results presented here add another dimension to the previous studies, which include concentrated suspensions of rigid particles and mercury drops under low zeta potential, with the consideration of the internal flow of liquid drops and double-layer polarization, characterized by its viscosity and the zeta potential respectively. It is found, among other things, that the smaller the viscosity of the internal fluid is, the higher the sedimentation velocity of liquid drops. The higher the zeta potential is, the larger the decrease in sedimentation velocity. In particular, the sedimentation velocity of an inviscid drop (gas bubble) is about three times higher than that of a rigid one. The decrease in sedimentation velocity resulting from the effect of double-layer polarization achieves about 50% if the zeta potential is sufficiently high.