Gen. 1:6-8 "And God said, Let there be a firmament in the midst of the waters, and let it divide the waters from the waters.  (God is "letting" something happen--letting something take its course.  Not creating anything.)  And God made the firmament (sky), and divided the waters which were under the firmament from the waters which were above the firmament: and it was so.  And God called the firmament Heaven.  And the evening and the morning were the second day."

The air now is humid.  Clouds probably formed after the water was separated into two parts.  Up to this point, it sounds like everything had been covered with water.  There are evidences of this in the archeological record that we can find today.  Whether it was this original covering of water, or the flood of Noah, I don't know.  Maybe it was both of these water coverings.

Again, God pronounces it "Good."  Two days have passed.  There is so much argument about the length of a day in theological circles that it makes my head hurt.  If you accept the gap between verse one and two, the length of the day doesn't really matter.

As day three begins, God is going to separate land from water and get things growing.  It will be a busy day. I wonder how long this took.  Were the mountains under water before this happened?  Did water evaporate up into the heavens?  I don't know.  Neither does anyone else.  God doesn't tell us.   Gen. 9-10  "And God said, "Let" the waters under the heaven be gathered together...and let the dry land appear...and God called the dry land Earth; and the gathering together of the waters he called Seas: and God saw that it was good."  We now have a land mass, and seas and oceans.

Everything is ready for plants.  Which will provide food for animals.  I would point out that the "life in the water" goes back for millions of years (carbon dating).  And it didn't evolve.  At this point in the Biblical account, the sharks and other water based life look almost exactly like they always did.  You can identify a cricket from the long ago past, because it looks like a cricket now.  There aren't any intermediate forms.  There is no significant evolution in the water.  Interesting.  God isn't going to "create, make, or let" fish have a place in the Biblical account because they are already there.  I believe they have been there in the water since verse one when he created the heaven and the earth.