JSFiddle - React, Tailwind, and code Playground

HTML

Position: static

<div class="green box200">
  <div class="blue box100" style="position: static">A</div>
</div>

Position: relative

<div class="green box200">
  <div class="blue box100" style="position: relative">B</div>
</div>

Position: absolute

<div class="green box200" style="position: relative">
  <div class="blue box100" style="position: absolute;">
    <div class="red box50" style="position: absolute;">C</div>
  </div>
</div>

CSS

/* sizes */

.box100 {
  width: 100px;
  height: 100px;
  top: 5px; 
  left: 5px;
}

.box200 {
  width: 200px;
  height: 200px; 
}

.box50 {
  width: 50px;
  height: 50px;
  top: 15px; 
  left: 15px;
}

/* colors */

.blue {
  background-color: blue;
}

.green {
  background-color: green;
}

.red {
  background-color: red;
}