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Chances are that the phone is broken. Depending on the type of phone and how it displays, the screen is likely cracked on the inside and beyond repair. If it was not dropped very hard or far, turning it off and on might help it reboot, but my best guess is that you need to take it back to your cell phone provider, find out if it is under warranty, and if it is, send it in. Depending on your provider, they might give you a phone to use in the meantime.
Your problem is caused by the communication foil between the LCD and the mainboard of the phone. This foil contains a number of circuits that makes data transfer possible. The one or more circuits do not communicate anymore, the phone displays odd images.
You don't have to drop your phone to crack / break the screen. This problem is almost certainly caused by a crack screen. This can be easily repaired by taking your phone to the local repair shop and getting the LCD replaced.
Depending on where you live and who you know you can get this done for $50 - $100 in North America.