Whilst all of the foregoing is true, it’s not going to explain to Steve how the ceiling fan motor gets slowed down!
Essentially this works by the controller limiting the amount of power in each cycle of mains that the fan motor gets. Since the fan presents a fixed load to the motor, then what happens is that because there’s less power, the motor slips out of synchronisation with the supply frequency and runs slowly. If the fan were removed, the motor would speed up again, but with less overall power available.
If you tried this with your drill, then I suppose that a similar scenario would result. When you were reaming your hole, the drill would slow down under load, but since the load would be variable, you wouldn’t be able to determine the position of the controller easily, if at all. My guess would be that in fact, you’d be most likely to get yourself in a situation where you were completely out of control of what was happening, and that wouldn’t be good at all. So the real message here is – don’t even attempt to do it!