Step wise
The drops in temperature tells you that your cooling system is adequate as it is. The sudden drop is due to the airflow, either from your fan kicking in or from vehicle movement.
My '84s (Z-51) stock fan and radiator cooled my new 406 (500hp+) quite well; perhaps enough to not really need the BeCool radiator and FlowTech pump. The Robert Shaw (#330-180) thermostat made a big difference, by allowing increased coolant flow.
The '84 and '85 Vettes used, not the ECM, but a fan switch (sending unit) in the head on the pax side. I changed mine years ago, that switches the fan 'on' 210 (vs 230 stock). I am waiting to hear about a cooler one, that Chevy sells one for a Lumina or such, that is set for 195. I'm also told that an aftermarket adjustable switch will work well, which installs in the radiator.
I recommend taking this in steps. The car is designed to run hotter, for emissions and efficiency, but most of us wish to see cooler numbers. Start with the cooler swtch you have and ensure that leaves and road crap do not block airflow through the radiator.
Your stock cooling system is adequate for power increases, until you get probably twice the stock output, at least. Increasing airflow, at this point, seems the next, sensible approach, after the switch.
