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Caused by a diamonds selective absorption of light due to the presence of foreign non-carbon atoms.
Light - a form of energy, which advances in wave-like motion and measured according to wave lengths and it`s frequency.
The normal eye is able to see only a part of this Light spectrum. The part between 400-700[nm]

A Light hitting a stone is absorbed partially in the stone. The part that is released we perceive and according to it we define the color of the diamond. 

A stone which absorbs a large amount of color will release less color, it will not look not as white and will cost less.

In diamond trading we tend to define  5  main color groups:
 Colorless
• Near Colorless
• Faint Yellow
•  Very Light To Light Yellow
• Fancy Yellow

FANCY colors do not come only in yellow shades but include also colors such as: red, blue, green, yellow and brown with red considered to be the most rare and expensive and brown to be the most common cheapest.

In order for colors to be defined as Fancy Colors they must have a vivid and strong color and also the color must be visible from the crown (top point of the diamond).