the glass tube should be submerged or it may crack from overheating...
The head and controler may, or may not be able to be submerged check markings on unit...
If the heater is capable, and there's room, have you thought about putting the heater in horizontally.
Saw a pic of a wet/dry with two heaters suction-cupped to the bottom of the sump.
Heaters usually are divided into two sections internally... the element is in the bottom half or so and the thermostat is in the top.
Not fully submerging it would expose the thermostat section to air, likely resulting in your water being overheated and killing the tank.