Dynamic logical storage capacity adjustment for storage drives

A method for dynamically altering logical storage capacity within multiple storage drives is disclosed. In one embodiment, such a method monitors, within a storage environment, characteristics (e.g., age, wear, etc.) of multiple storage drives. Each storage drive has an amount of overprovisioning associated therewith. Based on the characteristics, the method periodically modifies a logical storage capacity of the storage drives in order to alter the amount of overprovisioning. The method then reorganizes the storage drives within various storage groups (e.g., RAID arrays, storage tiers, workloads, etc.) based on their logical storage capacity. For example, the method may place, as much as possible, storage drives of the same logical storage capacity within the same storage groups. A corresponding system and computer program product are also disclosed.