Imagine that we are looking up at the sky and we see a cloud. Sometimes, that cloud can have really pretty colors on it - like a rainbow. This is called cloud iridescence. It happens when light from the sun shines through really small water droplets in the cloud.
When the light hits these droplets, it gets split up into different colors, like a rainbow. This creates a really pretty effect on the cloud. You might see colors like blue, purple, green, and pink.
It's like when you look at a soap bubble and see lots of pretty colors. Just like the soap bubble is made up of lots of tiny water droplets, the cloud is also made up of tiny water droplets.
So, when you see a cloud with colors on it, you're really looking at the light bouncing off of millions of little water droplets in the cloud. It's like a mini rainbow right above us in the sky!