Two liquids are miscible when, mixed together, they give one single homogeneous liquid. They are immiscible when they separate into two layers, the lighter one on top.
Examples
Example 9.10 (Water with ethanol, water with oil)
Water and ethanol are miscible: shaken together, they give one clear liquid. Water and oil are immiscible: however hard they are shaken, the oil comes back up and floats on the water in a separate layer. In a jar of salad dressing the oil floats above the vinegar, which is mostly water.