Under what circumstances does one need to have in order to make them combine into water, organically? (Meaning without any device or machine, assume you have two big clouds of each element floating in space - if they collide, do the naturally just form into water molecules?)

At reasonable temperatures, yes, the clouds turn into water and release energy, hydrogen burns. Water is entropically preferred as a lower energy state than separate atoms/molecules because of lower enthalpy at reasonable temperatures. Depending on density and ignition sources the reaction rate may vary, but it doesn't have to explode in a ms when there is a billion years available.

That's not what "entropically preferred" means. If something is a lower-energy state, it's energetically preferred, but may or may not be entropically preferred. Water is NOT - entropy would prefer simpler molecules over more structured molecules.

I think the concept you're thinking of is free energy, which determines the final destination of a process. The equation relating these things is (change in free energy) = (change in energy) - temperature × (change in entropy). Entropy only becomes the dominant component when temperature is high. And, as expected, water molecules dissociate at high temperature.

No, since this was chemistry, I was talking about enthalpy of an exothermic reaction (negative enthalpy), and interstellar space is pretty close to constant pressure, but not constant entropy for Gibbs free energy.

In any case: dH=TdS + Vdp note dp is small in space but V can be large and dS is the change in entropy.

...and enthalpy of ideal (interstellar H & O) gases does not depend on pressure, unlike entropy and Gibbs energy. If you really just mean free energy U, then they are basically the same thing in open space (but not in a plasma), a distinction without difference.

For further pedantics I recommend Wikipedia, since I doubt we are helping anyone else.

They randomly form and are destroyed over time due to collisions at various energies. It's also more common for ions to form in space which makes such simple chemical reactions easier.

Yes, oxygen and hydrogen mixed together will eventually react to form water. To react, atoms or molecules simply need to collide hard enough to overcome their initial repulsion and form bonds. In space it is a slow process, because the pressure and temperature are both low - this means the atoms rarely hit each other, and when they hit, they don't hit very hard.