The cloud floats in the sky.
Meaning: This means the cloud is staying in the air without sinking while it is inside the sky.
Choice of Words: Cloud is a visible mass of tiny water droplets or ice crystals suspended in the atmosphere. Floats means to stay in the air or on the surface of a liquid without sinking. In means being inside or surrounded by something. The is used to refer to a specific sky. Sky is the area above the earth where we see clouds, stars, and the sun. When you put them together, "The cloud floats in the sky" describes an action where the cloud is staying in the air without sinking while it is inside the sky.
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