The complex and diverse cloud vertical distribution (CVD) largely impacts radiative and precipitation properties of clouds. Using 10‐year active satellite observations, we classified CVD over the Tibetan Plateau into 12 categories and found that overlapping clouds have less frequency but stronger radiative effect, heating rate and larger precipitation (partly reflecting the seeding effect) compared with single‐layer non‐strong convective clouds. Under a warming climate due to uniform sea surface temperature increase of 4K (quadrupling CO2 increase), extremely high (>10 km) ice clouds will increase, particularly those below the tropopause will increase slightly (largely), accompanied by clear (weak) increases in stratospheric clouds. Simultaneously, a moderate to rapid decrease will occur in clouds below 10 km. Such CVD changes could further exacerbate tropopause warming. The probability of cloud overlap is also likely to increase in warmer climates, thus possibly further causing non‐convective cloud systems with stronger intra‐atmospheric heating, larger precipitation intensity and proportion.