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Healthy soil balances tiny particles, organic matter, air spaces, and living organisms. Together they hold a useful film of water while leaving enough connected pores for oxygen and drainage.
Building the idea, one step at a time
Sand, silt, and clay create the physical structure. Their particle sizes determine how quickly water moves and how much surface is available to hold it.
Organic matter acts like a sponge, but its bigger gift is helping particles form crumbs. Those crumbs create both small water-holding pores and larger air-filled channels.
Roots need water and oxygen at the same time. A pot can contain plenty of water and still leave a plant thirsty if compacted soil has pushed out the air roots need.
A useful check is to feel below the surface, notice how quickly excess water drains, and change one factor at a time before watering again.