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Varying light (2)
Ambient light dominates
A typical situation where ambient light dominates is an evenly overcast day. Shadows are not readily apparent and objects appear somewhat two-dimensional. This light is technically easy, as there is little contrast: the camera's auto-exposure system will get the exposure on the nose every time. However, the pictures will easily turn out boring and flat-looking.
The trick to taking good pictures in ambient-light situations is to find things that stand out in spite of the light rather than because of it. Instead of trying to bring down contrast, you should find subjects that have more of it. Look for objects with bold color or shape, or deeply shadowed areas such as gateways or windows -- this way, you can turn the ambient light into a diffuse light source, which is usually much more interesting.
Diffuse light dominates
Diffuse light is "good light." Contrast levels are manageable, the light brings out three-dimensionality, and the pictures have a very pleasant, soft quality. A photographer usually actively seeks out diffuse light: the famous "magic hour" before sunset or after sunrise is just such a situation -- the sunlit horizon acts as a huge diffuse light source, with a lovely, warm color cast to boot. Diffuse light is at its best coming from an angle to the subject: neither fully backlit nor front-lit. Carefully engineered light is usually dominantly diffuse: when you see a studio scene, over nine times out of ten, it is carefully lit with diffuse light, possibly from multiple sources.
Scattered light
Light scattered by dust, raindrops, fog, clouds, haze, or smoke is something of a special case. Sometimes it is undesirable, such as for a high-altitude landscape. Haze makes it look murky and flat. UV filters and especially polarizers can help cut through haze and make the scene clearer. However, more often it's better to make a virtue out of a weakness and actively seek to exploit scattered light. It can show up light beams, create a wonderful sense of distance and depth, and create a great deal of atmosphere. Don't try to take a picture through the fog or the haze: take a picture of the light flowing through the fog or haze.