Rinse the surface of four terracotta flowerpots with water to remove any dirt. Use a 12-inch pot, a 10-inch pot, an 8-inch pot and a 6-inch pot. Also, wash a 14-inch terracotta saucer and an 8-inch terracotta saucer. Let the pots and saucers dry overnight.
Paint the terracotta pots and saucers using outdoor paint. Paint the outside of the 6-inch pot yellow to represent the light. Paint the inside and outside of the 8-inch saucer black to represent the walkway around the top of the lighthouse. Paint the inside and outside of the 14-inch saucer blue to look like the ocean. Paint the outsides of the remaining three pots as desired.
Place the 14-inch saucer upright on a flat work surface. Apply plumber's caulk around the rim of the 12-inch terracotta pot. Turn the pot upside down and center it on the 14-inch saucer. Press down to secure it.
Apply plumber's caulk to the inside rim of the 10-inch pot. Place it on top of the upturned 12-inch pot so that they overlap, with the top rim of the 10-inch pot sitting over the bottom of the 12-inch pot. Repeat the process with the 8-inch pot, placing it on top of the 10-inch pot.
Apply plumber's caulk to the inside bottom edge of the 8-inch saucer. Turn the saucer over and place it on top of the upturned 8-inch terracotta pot.
Apply plumber's caulk to the rim of the 6-inch pot. Turn the pot upside down and place it on top of the upturned 8-inch saucer.
Spray the surface of the lighthouse using an acrylic sealant. Let the sealant and plumber's caulk dry for 24 hours before placing the lighthouse in your yard.