Water drops appear on the outer surface of a glass containing cold water. This occurs due to the process known as condensation.
When the water vapour (gas) present in the air, comes in contact with a cold surface, such as the outer surface of a glass containing cold water, it condenses to form water (liquid) in the form of water droplets on the outer surface of the glass. This process of conversion of water from its vapour or gaseous form (state) into liquid form (state) is known as condensation.