Do the dead know what is happening on Earth? Are they pleased or displeased by what is happening with me?

When someone righteous passes away usually the family experience a heightened sense of religiosity, or they may slip back into old habits as the person who used to remind them of Allah is gone. A companion said that when we were with the Prophet (pbuh) a good deed was easier to do,all we cared about was the akhirah. Each one of the companions feared hypocrisy so much, when their brothers and sisters passed away they were worried would they be with them in the hereafter? 

When the brother of Abu Darda (ra) passed away he used to make a dua “Oh Allah I seek refuge from you from doing anything to disgrace me in the sight of by bother”. The deeds of the living are shown to those who have passed away. If they see they are good they rejoice in their graves.