Why do clouds form, and why do they stay up?
Clouds form when air cools to the point where it can no longer hold its water vapour, and they stay up because the droplets are so small that air resistance almost entirely offsets their weight.
Why cooling causes condensation. Warm air holds more water vapour than cold air. When air cools to its dew point, the vapour condenses onto tiny particles — dust, salt, pollen, pollution — called condensation nuclei. Without those particles condensation is remarkably difficult, and clean air can become substantially supersaturated without forming anything.
What makes air cool, which is the same in every case: it rises and expands. Rising air moves into lower pressure, expands, and cools without losing heat to anything — adiabatic cooling. That single mechanism explains almost all cloud:
Convection, where the sun heats the ground and warm air rises — producing the lumpy cumulus of a summer afternoon.
Orographic lift, where air is forced up over hills and mountains, which is why cloud sits on high ground and why one side of a range is wet and the other dry.
Frontal lift, where a warm air mass rides over a cold one, producing the layered sheets of an approaching front.
Convergence, where air flows together and has nowhere to go but up.
Why they do not simply fall. Cloud droplets are around a hundredth of a millimetre across. At that size the ratio of surface area to volume is enormous, so air resistance dominates and terminal velocity is a few centimetres per second — slower than the gentle updraughts holding them. A cloud is not floating; its droplets are falling extremely slowly through rising air.
Why they are white, and grey. Droplets are large compared with the wavelength of light, so they scatter all colours roughly equally, which appears white. A thick cloud absorbs and scatters so much light that little reaches the bottom, which we see as grey.
Rain requires droplets to grow roughly a million times in volume, by collision or via ice crystals — which is why not every cloud rains.