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Clouds are a scenic addition to the Overworld within each Minecraft world.
Clouds are found at about half world height (y=128), and always move westward (towards negative X). Clouds are often quite hard to see through. If flying above the clouds, a player is able to see through the clouds to the ground below, but the appearance will be hazy. However, clouds will completely obscure objects above them from view, if looking up from below. Clouds can be any size, and are made of multiple different "Cloud Segments", which are each 12 blocks long, 12 blocks wide, and 4 blocks tall (or 0 blocks tall depending on if the Clouds setting is set to "Fast" in the options menu). Depending on a player's distance, the cloud may be rendered slightly closer than it actually is (e.g. flying upwards can make a cloud appear above y=130).
Clouds can easily be enabled and disabled from the options menu.