As long as the parcel is unsaturated (relative humidity < 100% or whenever the dew point temperature of the parcel less than the temperature of the parcel), the rate of cooling is 10°C for every 1000 meters the parcel is lifted.
As a rising parcel cools, its relative humidity increases. Once the relative humidity reaches 100% (determined when the parcel temperature cools down to its original dew point temperature), further lifting (and cooling) results in net condensation, forming a cloud. Remember that an air parcel will never contain more water vapor than its capacity or saturation mixing ratio.
Since condensation releases latent heat within the parcel, the rate of cooling is slower. Parcels which are saturated cool at a rate of 6°C for every 1000 meters the parcel is lifted. Also keep in mind that once a cloud begins to develop in a parcel, just enough water vapor will condense into liquid water so that the air in the parcel remains saturated (relative humidity = 100% and the dew point temperature equals the air temperature inside the parcel).
When lowering an air parcel in the atmosphere, the temperature changes are reversed. If there is no cloud (liquid water) in the parcel, the air temperature in the parcel increases at a rate of 10°C for every 1000 meters the parcel is lowered.
If there is a cloud in the parcel, it will evaporate because as the parcel warms its capacity for water vapor increases. As long as there is still a cloud (liquid water) in the parcel, just enough water will evaporate to keep the relative humidity at 100% and the dew point temperature equals the air temperature. Since it takes energy to evaporate water, the rate of heating is slower. Parcels which contain an evaporating cloud warm at a rate of 6°C for every 1000 meters the parcel is lowered until the entire cloud has evaporated.
Now lets look at a numerical example. Below is a link to two tables. The first table shows you what you would know about the atmosphere before performing lifting a surface parcel upward. You would have to determine at what altitude a cloud would form by filling in the blanks. The second table shows the solution. NOTE: dont worry about the columns labeled environmental temperature and stability, we have not covered that material yet. We will go over the solution in detail during class. Click Here to view the example.
Although the instructive method of filling in a table to keep track of what happens to air parcels as they rise is somewhat simplified, I believe it is very helpful in getting a first-order understanding of how clouds form. You will have to perform similar exercises in both homework problems and exams, so you should understand how to do it and the reasoning behind the rules for doing it.
In doing this we have ignored some of the complicating details. For example, air parcels do not remain completely isolated from the surrounding air, some mixing does occur. Also the rate of cooling of saturated parcels is not always 6°C per 1000 meters (as this is only an average). The actual cooling rate depends on how much water vapor condenses, which changes as the saturation mixing ratios change. Another detail is that the dew point temperature of rising parcels does not remain constant prior to saturation, but actually decreases slightly. You are not expected to consider these details for homework or exam questions.
The next page discusses situations where air rises in the atmosphere.