Here's a breakdown:

* Water Vapor: Water exists in the atmosphere as a gas called water vapor.

* Condensation: As warm, moist air rises, it cools. This cooling causes the water vapor to lose energy and change state from a gas to a liquid.

* Cloud Formation: The tiny liquid water droplets or ice crystals that form from condensation cluster together, forming clouds.

Let me know if you'd like to learn more about the different types of clouds or the process of precipitation!