An Iridescent Cloud Over Ohio . ... Credit Copyright: Todd Sladoje Explanation: Why would a cloud appear to be different colors? A relatively rare phenomenon known as iridescent clouds can show unusual colors vividly or a whole spectrum of colors simultaneously. ... When the Sun is in the right position or mostly hidden by thick clouds, these thinner clouds significantly diffract sunlight in a nearly coherent manner, with different colors being deflected by different amounts. ...