The diagram represents the Earth's layers based on their physical and chemical properties. The continental crust is the landmass we live on, while the oceanic crust is the part of the Earth's crust that lies beneath the oceans. The lithosphere is the rigid outer layer of the Earth that includes both the crust and the uppermost part of the mantle, providing a solid foundation for tectonic plates. The asthenosphere, located beneath the lithosphere, is a semi-fluid layer that allows for the movement of tectonic plates due to convection currents. Understanding these layers is crucial for studying geology and plate tectonics.