As a modern technological trend, unmanned aerial vehicles (UAVs) are extensively employed in various applications. The core purpose of condition monitoring systems, proactive fault diagnosis, is essential in ensuring UAV safety in these applications. In this research, adaptive health monitoring systems perform blade balancing fault diagnosis and classification. There seems to be a bidirectional unpredictability within each, and this paper proposes a hybrid-based transformed discrete wavelet and a multi-hidden-layer deep neural network (DNN) scheme to compensate for it. Wide-scale, high-quality, and comprehensive soft-labeled data are extracted from a selected hovering quad-copter incorporated with an accelerometer sensor via experimental work. A data-driven intelligent diagnostic strategy was investigated. Statistical characteristics of non-stationary six-leveled multi-resolution analysis in three axes are acquired. Two important feature selection methods were adopted to minimize computing time and improve classification accuracy when progressed into an artificial intelligence (AI) model for fault diagnosis. The suggested approach offers exceptional potential: the fault detection system identifies and predicts faults accurately as the resulting 91% classification accuracy exceeds current state-of-the-art fault diagnosis strategies. The proposed model demonstrated operational applicability on any multirotor UAV of choice.