Cloud types are classified based on their altitude and appearance. High-level clouds like cirrus and cirrostratus form at altitudes over 6000m and are made of ice crystals. Medium-level clouds such as altostratus and altocumulus form between 2000-6000m. Low clouds like stratocumulus and stratus form below 2000m. Clouds impact climate through radiation, precipitation formation, and vertical transport of gases and aerosols.