Answer:
I am a tale in childrens' minds. Though an illusion, I occur every night. I give them a fantasy, I give them a fright. What am I?
You can see me in water, but I never get wet. What am I?
Take off my skin I won't cry but you will. What am I?
Only one color, but not one size, stuck at the bottom, yet easily flies. Present in sun, but not in rain, doing no harm, and feeling no pain. What am I?
I am commonly ate before I'm born and after I'm dead.
It has no top or bottom, but it can hold flesh, bones, and blood all at the same time.