How to create nested folders in iCloud Documents? I can’t create more than one level of folders in iCloud Documents from iWork. I really want to move my Documents folder (which is all iWork documents) to the cloud. It’s neatly arranged in folders on my disk, but I can’t just drag the folder to cloudify it. Is there any workaround to this problem?
I'm afraid not. iCloud is designed for iOS devices without a user accessible file system. iCloud files are strictly associated with apps and only allow one level of folder nesting.

If you're not happy with this, you can send feedback to Apple about it here: http://www.apple.com/feedback/icloud.html

You could use Dropbox instead (https://www.dropbox.com/) which has more flexibility around file organisation. The downside is that you only get 2GB free but you can earn more free storage in various ways. Google Drive (https://drive.google.com/start#home) gives you 5GB free.