Take a look at the image attached.
On my whiteboard, I have showed a picture of this scenario.
First let's review potential energy.
Potential energy is energy that is stored,
which can be used to do work.
However, there are specific types of potential energy.
The potential energy here would be gravitational potential energy.
Anything that is raised above Earth's surface has the potential to
fall which is why we call it gravitational potential energy.
Gravitational potential energy has to do more with position
or the position of an object in a gravitational field.
As the diver dives into the water, that gets
turned into kinetic energy shown at the bottom.