Why does Allah ask the worldly (life/Earth) about its conditions, when He is most knowing of them, and why does He ask if there is no answer?

The Hadith with the specific wording "To whom belongs the dominion today?" has not been narrated in the authentic Sunnah books with a chain of transmission. Rather, Ibn al-Jawzi mentioned it in "Bustan al-Wa'izin" without an isnad (chain of narration), and thus no rulings can be based on it.

The meaning conveyed in the question (Allah Almighty's questioning of creation after their annihilation) is affirmed in the Qur'an and Sunnah. Allah Almighty says: (To whom belongs the dominion this Day? To Allah, the One, the Irresistible!) [Qur'an 40:16]. And in the Prophetic Hadith, Allah says: "I am the King. Where are the kings of the earth?"

The exegetes (mufassirun) have differed regarding the timing of this question. Some said it is when creation perishes and there is no one to answer, so Allah answers Himself. Others said it is on the Day of Resurrection after they are gathered, and all creation answers Him, or Allah answers Himself while creation remains silent.

There is no problem with this question; the answer might come from creation after their resurrection, or the questioner and answerer might be Allah Almighty Himself. The purpose of it is to demonstrate His greatness and majesty, and to rebuke those who claimed dominion besides Him in this world.

A rhetorical question does not necessarily aim to seek information; rather, it may be for showing honor, rebuke, or regret. This is common in the Arabic language, where a poet asks something that cannot be answered to convey meanings.