Title: Unleash Model Capacity for Universal Dense Retrieval by Task Specialty Optimization. Abstract: Universal dense retrieval, with one unified representation space to empower various retrieval scenarios, has many appealing advantages in simplicity, efficiency, and potential to break echo chambers with cross-scenario information access. However, standard multi-task trained dense retrievers often fail to meet the accuracy of scenario-specific models. In this paper, we analyze the multi-task learning in universal retrieval and show that the model capacity is not the main bottleneck. It is the optimization failed to fully utilize the network parameters to capture task-specific signals. This motivated our development of TACO-DR, which conducts multi-task learning for universal retrieval with TAsk speCialty Optimization. TACO-DR dynamically adjusts the learning rate for each parameter regrading each task based on its task-specific sensitivity, to encourage parameters to better capture task specific signals. On the KILT benchmark, TACO-DR outperforms various multi-task learning methods and achieves better overall accuracy than single-task models. Our analysis shows that TACO-DR better utilizes the model capacity with more task-specific parameters. Our code and model checkpoints will be open-sourced.