A disk drive is disclosed including a disk having a plurality of tracks, wherein each track comprises a plurality of data sectors and a plurality of servo sectors. The disk drive further comprises a spindle motor for rotating the disk, and a head actuated radially over the disk, wherein the head comprises a dynamic fly height (DFH) heater. Control circuitry within the disk drive is operable to select an operating control setting for the DFH heater by positioning the head over one of the tracks, measuring a first rotation time of the disk in response to at least one of the servo sectors, adjusting the control setting for the DFH heater, measuring a second rotation time of the disk in response to at least one of the servo sectors, and detecting whether the head has contacted the disk in response to the first and second rotation times.