The discussion centers on why less dense liquids float on denser liquids, primarily explained through Archimedes' principle. When two liquids of different densities are combined, the heavier liquid settles at the bottom due to its lower potential energy, while the lighter liquid remains above. The separation occurs because water molecules attract each other more strongly than they attract oil molecules, leading to distinct layers. Mixing can occur if the intermolecular forces between the two liquids are comparable to the forces within each liquid, without requiring a chemical reaction. Understanding these principles is essential for grasping liquid behavior in mixtures.