Using the framework of nuclear energy density functionals we examine the conditions for single-nucleon localization and formation of cluster structures in finite nuclei. We propose to characterize localization by the ratio of the dispersion of single-nucleon wave functions to the average internucleon distance. This parameter generally increases with mass and describes the gradual transition from a hybrid phase in light nuclei, characterized by the spatial localization of individual nucleon states that leads to the formation of cluster structures, toward the Fermi liquid phase in heavier nuclei. Values of the localization parameter that correspond to a crystal phase cannot occur in finite nuclei. Typical length and energy scales in nuclei allow the formation of liquid drops, clusters, and halo structures.