Notice that above and below always go together as a pair. If one object is above another, then the second object must be below the first. Practicing with pictures like these, and describing both objects in the same sentence, helps build a strong understanding of position words.
Once children are comfortable with above and below, they are ready to explore other position words, such as beside and next to, or comparing three objects at once with top, middle, and bottom. These lessons build on the same idea of comparing where things are, just from different directions.