This explanation explains why some liquids mix and some don't.
Firstly, some do mix because they are the same density. Oil is denser than water so it floats on top. They are immiscable.
Immiscable is like when you are playing on the playground. There are girls in one corner and boys in another. They don't want to mix with the different gender, just like the oil.
But you can make them mix. Just put salt in. Salt will push the oil down to the bottom. But when the salt dissolves, the oil floats back up to it's friends. We tried it, and it looked like a lava lamp.
Now you know why some liquids mix and some don't.